Marvell Technology cutting 900 jobs

Marvell Technology is cutting 900 jobs worldwide as it restructures and chases more profit.

The chip company, whose U.S. headquarters is based in Santa Clara, is also discontinuing some unspecified R&D and engineering processes.

“By focusing on our strengths in storing, moving, and accessing data at high speeds, Marvell is well-positioned to enable the technology of tomorrow,” Matt Murphy, Marvell’s president and CEO, said in a news release Wednesday.

The job cuts amount to about 16 percent of its workforce, which the company last reported in January totaled nearly 5,500 employees.

The restructuring and cuts come near the end of a year of big changes at the company, which saw its husband-and-wife co-founders ousted in April after accounting issues, and is under investor pressure.  Sehat Sutardja and Weili Dai had been at the helm of the company since the company was founded in 1995. Murphy was named CEO in June.

The company expects to save $180 million to $200 million in annual operating expenses after the cuts and changes, for which it will take charges of $90 million to $110 million over the next four quarters.

Shares of Marvell are down nearly 2 percent to $12.68.

 

Photo illustration from Thinkstock

 

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