Marvell Technology Group To Eliminate Approx. 900 Positions - Quick Facts

(RTTNews) - Marvell Technology Group Ltd. (MRVL) announced restructuring actions which will eliminate approximately 900 positions worldwide. Marvell is discontinuing specific R&D programs, streamlining engineering processes, and consolidating R&D sites. The company expects a significant reduction in legal and accounting costs. The company also 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.

The company said the restructuring actions are expected to be fully implemented by the end of October 2017 to lower annual operating expenses from a current annualized run rate of $1.08 billion to the $820-840 million range. As a result of these actions, the company expects to incur charges of $90-110 million over the next four quarters, including cash charges of $35-50 million.

Matt Murphy, Marvell's CEO, Officer, said: "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."