Broadcom layoffs expected to hit Israeli workers

Chipmaker Broadcom Corporation (Nasdaq: BRCM) has announced that it will lay off 3% of its workforce, or about 200 employees. The company added that it will also take other cost-cutting measures in what it termed "belt-tightening", including salary cuts and fewer flights. The measures will probably also affect the company's operations in Israel, where 10-20 employees can expect to lose their jobs at its R&D center in Herzliya.

Broadcom has 150 employees in Israel, where its R&D center is based on four acquisitions made over the past ten years: VisionTech in 2000; M-Stream in 2004; Siliquent Technologies Inc. in 2005; and Octalica Inc. in 2007.

Broadcom's cutbacks come after the company published a disappointing financial report for the fourth quarter of 2008, and also published a weak guidance for the first quarter. The company lost $160 million on $1.13 billion revenue. The cutbacks are not based on geography, but on the company's less profitable production lines.

Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009