Thursday, November 3, 2016

Marvell Cuts 900 Jobs in Restructuring

Marvell Technology Group announced restructuring actions intended to refocus its research and development (R&D), increase operational efficiency and improve profitability. The company will discontinue specific R&D programs, streamline engineering processes, and consolidate R&D sites.

The restructuring, which will eliminate approximately 900 positions worldwide by the end of October 2017, will lower annual operating expenses from a current annualized run rate of $1.08 billion to the $820-840 million range. In addition, Marvell said it plans to divest non-strategic businesses with approximately $60 million in operating expenses and $100 million in revenue, based on a first half of fiscal 2017 annualized run rate.

Matt Murphy, Marvell's President and Chief Executive Officer, explained, "The single biggest factor limiting the potential of the Cloud and utilization of billions of connected devices is the bandwidth of today's technology. By focusing on our strengths in storing, moving, and accessing data at high speeds, Marvell is well-positioned to enable the technology of tomorrow."