Soon after announcing plans to "explore strategic alternatives" for its unprofitable cellular baseband business, including a sale or a wind-down, Broadcom has opted to execute on the latter.
Broadcom tested the market for a sale, but decided to wind down that part of the business and has begun to implement an exit strategy, company president and CEO Scott McGregor said on the company’s second quarter call Tuesday.
Tied in, Broadcom recorded restructuring costs of $23 million in the quarter, a portion that affects about 250 employees, primarily in SG&A (selling, general and administrative), Eric Brandt, Broadcom’s EVP and CFO, explained. Broadcom, he added, expects to record an additional $230 million of restructuring charges over the next 12 months due to the further reduction of an additional 2,250 employees and the closing or consolidation of 18 locations and the termination of some existing contracts.
The smarter way to stay on top of broadcasting and cable industry. Sign up below.
Thank you for signing up to Broadcasting & Cable. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.