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Broadcom Cuts 2,500 Jobs as It Kills Its Baseband Business

Broadcom, the chip equipment company is cutting 2,500 jobs after making the decision to wind-down their cellular baseband semiconductor business. Broadcom's chips were used to manage the radio control functions in devices like Apple's iPhone. Broadcom CEO Scott McGregor said the decision to wind-down the baseband business "minimizes ongoing losses from the business and enables us to focus on our core strengths." Broadcom looked for a potential buyer of the baseband company in early June but decided against selling it. Shutting down the division will save Broadcom $600 million in expenses and about $100 million in stock based compensation. Broadcom is up 31% for the year. TheStreet’s Whalen MacHale has details.