Marvell Technology Group Ltd. has begun a restructuring plan to downsize its mobile platform organization and refocus its technology to the Internet of Things (IoT), automotive and networking.
The company says it will continue to support its wireless connectivity business such as WiFi and other wireless standards needed to support its strategies in existing markets as well as to expand into more profitable opportunities such as IoT and automotive.
The restructuring of the business will save the company in the range of $170 million to $220 million on an annualized basis. However, the downsizing of the mobile platform organization will result in a reduction of 17% in global headcount, the company says.
Under the restructuring plan, which has already begun, the company expects to incur total charges of about $100 million to $130 million including severance and employee-related costs that will take effect in the third and fourth quarters of fiscal 2016. The Santa Clara, Calif.-based company also plans for a facility and asset impairment charge of $30 million to $40 million as a result of the restructuring.
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