Marvell to lay off 17% of work-force as it re-positions mobile

Weili Dai, president and co-founder Marvell

The company is to lay off 17% of its 7,000 employees. The lay-offs will hit staff in its mobile operation, they will cost $100-130 million and will save $170-220 million a year.

Mobile produced $122 million revenues last year for a profit of $13 million.

Marvell is involved in an investigation into its accounting procedures.

In an SEC filing, Marvell stated:”The investigation consists of a review of certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment.”

Marvell overstated of revenue for the financial quarter ending on July 31 by 8-9%. It says that it will file its financial results late and they will show a $382 million loss. The company’s shares have fallen 38% this year.

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See also: Conference & exhibition: Technology for building the IoT