Marvell Technologies to cut jobs in mobile business

Reuters News
Posted: Sep 24, 2015 4:42 PM

(Reuters) - Chipmaker Marvell Technology Group Ltd said it would cut about 17 percent of its global workforce as the company trims its mobile business.

Shares of the Hamilton, Bermuda-based company rose 8 percent to $9.75 in after-market trading on Thursday.

The company's mobile and wireless business makes connectivity chips, and processors for smartphones and tablets.

Marvell said it would now focus on emerging opportunities in businesses such as automotive and Internet of Things, the concept of connecting household devices to the Internet.

The company said on Sept. 11 a slowdown in the personal computer market had led to a weaker-than-expected demand for its hard-disk drive products.

Marvell had a total of 7,163 employees at the end of January.

The chipmaker said on Thursday that it expects to take a charge of $100 million to $130 million related to the restructuring.

The restructuring is currently expected to result in annualized operating savings of $170 million to $220 million, the company said.

Marvell on Sept. 11 disclosed an accounting probe that led to the sharpest drop in the stock in 14 years.

Up to Thursday's close, the stock had fallen about 38 percent this year.

(Reporting by Vidya L Nathan in Bengaluru; Editing by Sriraj Kalluvila)