Marvell Shares Rally After Company Announces Layoffs

Marvell Technology Group Ltd. said Thursday it will cut 17% of its global workforce as it restructures its mobile business. The Santa Clara, Calif., based company said it will refocus mobile to Internet of Things, automotive, and networking. That is expected to result in annualized operating savings of $170 million to $220 million, Marvell said in a statement. The restructuring will begin immediately and Marvell expects the bulk of it to take place through the end of fiscal 2016. The company estimated charges of approximately $100 million to $130 million, mostly to cover severance and employee-related costs. Shares of Marvell rose 8.6% in after-hours trading after ending the regular trading day up 3.5%.