Broadcom (NASDAQ: AVGO) announced that it had laid off about 1,100 of its employees across its businesses to cut costs after its $5.5 billion merger with Brocade Communications Systems. In a regulatory filing with the SEC, Broadcom said it was further evaluating its resources and may continue to terminate more positions.
"Management is in the process of further evaluating our resources and business needs and may eliminate additional positions, which would result in additional restructuring costs," the filing reads.
Broadcom claims that it had incurred $143 million in restructuring charges during the first two quarters of its fiscal 2018, mainly from employee termination costs. The company plans to pay a most of the termination costs during the third quarter.
Broadcom agreed to acquire Brocade in 2016 for $5.5 billion, and secured the deal in November 2017. "We acquired Brocade to enhance our position as a provider of enterprise storage connectivity solutions, broaden our portfolio for enterprise storage, and to increase our ability to address the evolving needs of our original equipment manufacturer, or OEM, customers," the company said.
Broadcom had exceeded expectations of non-GAAP second quarter earnings of $4.76 a share on a revenue of $5 billion, reporting a Q2 net income of $3.73 billion, or $8.33 a share, on revenue of $5.01 billion, which is up 20 percent from last year. Non-GAAP earnings for the second quarter were at $4.88 per share.