Bloomberg reported on Tuesday that Marvell Technology (MRVL:NSD) will lay off 4% of its staff, or approximately 320 jobs, due to a fall in chip demand. The decision was communicated to the impacted employees.
Marvell is a provider of semiconductor solutions for computing, networking, security, and storage data infrastructure. This is the first significant effort by the corporation to save expenses by reducing headcount. In October 2022, Marvell’s China operations only lost a few R&D positions.
As a result of decreased chip demand and a challenging macroeconomic environment, the business expects its first-quarter sales of $1.3 billion to fall year-over-year.
A number of technology companies have announced layoff plans due to fears of an oncoming recession. Yesterday, Amazon (AMZN:NSD) announced that it would eliminate an additional 9,000 positions after announcing the elimination of 18,000 positions. Moreover, Meta Platforms (META:NSD) announced its intention to eliminate an additional 10,000 employees last week.
The question of whether Marvell stock will increase emerges. The average price target for Marvell stock, according to Stock Target Advisor, is $57.66, indicating a possible upside of 34.6% from the present price. The consensus rating for the stock is Strong Buy, based on twenty Buy ratings and two Hold opinions. The company’s shares have increased by 14.5% so far in 2023.