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Apple Supplier Broadcom to Slash 1,900 Jobs Globally

Operations Inside Broadcom Corp. Broadband Communication BusinessOperations Inside Broadcom Corp. Broadband Communication Business
An employee sits under Broadcom Corp. signage inside the lobby of the company's headquarters in Irvine, California, U.S., on Friday, April 12, 2013. Broadcom Corp. designs, develops, and supplies integrated circuits for cable set-top boxes, cable modems, high-speed networking, direct satellite and digital broadcast, and digital subscriber line.Photograph by Patrick Fallon — Bloomberg via Getty Images

Chipmaker Broadcom Ltd, the company created following the merger of Avago and Broadcom, said it would cut about 1,900 jobs globally across its businesses.

Shares of Broadcom (BRCM), which also supplies to Apple (AAPL), were up 8% at $148.20 in extended trading on Thursday.

The company said it expects to take charges of about $650 million related to the job cuts through 2018.

Avago completed its $37 billion deal for Broadcom last month.

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Revenue for the legacy Avago business fell 4% to $1.77 billion in the three months ended Jan. 31.

On an adjusted basis, the company reported revenue of $1.78 billion, above the $1.75 billion analysts’ on average had expected, according to Thomson Reuters I/B/E/S.

The company’s net income fell to $377 million, or $1.30 per share, in the first quarter, from $429 million, or $1.49 per share, a year earlier.

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Excluding items, the company earned $2.41 per share, well above the average analyst estimate of $2.30.

Broadcom forecast adjusted revenue of $3.55 billion, plus or minus $75 million, for its second quarter ending April. Analysts on average were expecting $3.57 billion.