US semiconductor company Marvell lays off its entire Chinese research and development team in latest round of job cuts amid industry slowdown
WE Semiconductors Marvell Technology is laying off its entire research and development team in mainland China, about five months after the company start cutting jobs to reduce the scale of operations inside largest chip market in the world.
Santa Clara, California-based Marvell said it is eliminating about 320 jobs, or 4% of its global workforce, in response to what the company describes as an industry downturn, according to an industry report. statement from the company on Wednesday.
“We are streamlining our organization to ensure that our workforce is positioned to take advantage of promising opportunities,” said Stacey Keegan, Marvell’s vice president of corporate marketing. both now and when we come out of the current downtrend in the industry.” .
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While China remains a large and important market for Marvell, Keegan said the company has decided to “focus its resources in China on customer-facing teams to best support local customers.” and business opportunities”. However, she added that the move “resulted in the elimination of some R&D roles”.
The logo of American semiconductor company Marvell Technology is seen at its headquarters in Santa Clara, California. Photo: Shutterstock alt=The logo of American semiconductor company Marvell Technology is seen at its headquarters in Santa Clara, California. Photo: Shutterstock>
Most of Marvell’s latest job cuts will directly affect the company’s entire research and development operations in mainland China, while only about 5% of these layoffs will made in the US, according to a report Wednesday by Chinese semiconductor industry portal Ijiwei, which cites sources familiar with the matter.
Marvell is expected to immediately notify its affected Chinese employees and offer a severance package similar to the one offered during last October’s layoffs, the company reports. Ijiwei said.
Various departments at Marvell’s office in Shanghai and in citadelcapital of the southwestern province of Sichuan, was shrunk or completely cut back last October.
Before the layoffs, Marvell had nearly 1,000 employees in China at its peak. About 800 of these workers work in Shanghai, home to the company’s third-largest research and development team after operations in the United States and Israeli.
Marvell’s latest job cuts reflect increased pressure on the world’s major semiconductor companies due to the huge imbalance between supply and demand in the global market, where Chip inventories have risen to record levels.
Chinese armMainland joint venture of SoftBank Corporation-Owned Arm, last month lay off more than 100 people across three divisions, after a difficult 2022 with profits plummeting 96%.
Meanwhile, US memory chip giant Micron Technology Shutting down DRAM design operations in Shanghai late last year, with about 150 Chinese engineers being asked to move to the US or India amid rising tensions between Beijing and Washington.
Marvell, advanced chip design for cloud computing, automotive, 5G enterprise networking applications and mobile communications, which earlier this month reported record sales of US$5.92 billion for the financial year ended January 28, up 33% from a year earlier. , thanks to growth from those business segments. But it also posted a net loss of US$164 million in the last financial year.
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