It looks like the NXP deal will be approved sometime this week. Can it be?
Can the soap opera known as Qualcomm-NXP (with Boroadcom-Qualcomm prequel) finally be over?
Now I'm just wondering what will happen if NXP doesn't turn out to be the Qualcomm-savior everybody on top is convinced it will be.
The head count in NXP(9bil revenue and 30k headcount) is way too bloated to sustain
This simplistic view omits the quality of life factors at NXP/Europe.
Perhaps 5 gulfstreams, $50million payday CEO is 'too bloated to sustain'.
Perhaps repeated billion dollar fines and multi-year legal fights with a lead customer, are not exactly 'wise' ?
Perhaps crazy working hours, short vacations and stupid expensive healthcare are not the best lifestyle choices ?
Perhaps some folks know about German working laws; a German CEO would be beyond embarrassed at a $50million payday just months before laying off thousands. Large German employers actually have representation at board level from unions and communities. Maybe they dont make that absolute maximum money possible. But you know what ? I see plenty of hard, quality engineering in those BMWs and Mercedes and Germans who have healthcare covered, 5 or 6 weeks of vacation. They are doing something right.
The head count in NXP(9bil revenue and 30k headcount) is way too bloated to sustain in comparison to QCOM(20Bil revenue and 30k headcount) and QCOM headcount is bloated in comparison to BRCM(19Bil revenue with 16k odd headcount).
QCM-NXP merger is good for both parties to help build a wider portfolio. NXP can leverage on QCOM R&D spend. QCOM can leverage on NXP for its sales network and wider customer base in automotive, security and IOT.
Everything being said the combined company with a total headcount of 60k would see 10-15% head count reduction post merger
@bst, yes, that story is just out! This administration is laughably incompetent, he cant make up his damn mind and has no clue what he is doing. Either do it or dont, but dont waffle and flip flop
https://www.wsj.com/articles/u-s-sets-dates-for-tariffs-investment-restrictions-on-china-1527599565
too early to say NXP is a done deal....
An actual good discussion!
I wonder how qcom can justify such a large workforce with much smaller revenue. Seems qcom can do more financial engineering here.
@hnm, N has audio and music for automotive. Low power BLE was the only advantage CSR brings to Q . From a business point of view CSR is done
@wjh if things go well why are the revenues of parts of that N's security unit published separately but not automotive? The platform you refer to is just one product portfolio. And next question is where and when did N cut R&D expenses? Since FSL merger no press releases by N. Q did it tough..
@mvr NXP cutting its R&D spend, increasing its gross margin and operating income is all accounted for in their results. NXP has recently announced a new automotive platform which is bound to pull in lot of design wins in the next few years.
The security and connectvity business unit is in similar growth trajectory. The units that don't seem to be performing particularly well are RF and Digital Networking which could be spun off or shutdown.
CSR has very strong presence in voice and music with auto use cases. Their BT is world class.
NXP brings MCUs
Q will continue to lead in telematics and infotainment through current offerings
@pux the departments you count is typical at every merger&acq. Even though there can be little overlap at R&D such takeovers are very good chance to cancel projects which don't overlap but which don't produce revenue.
No to forget that such acquisitions are good timing for spin offs. E.g. after takeover automotive can stay but all other units can be sold stepwise.
There is no clear evidence as public info that N is cutting down on its budget. Did they layoff after FSL merger, as much Q did in 2015 and 2018?
Lots of synergies identified in IT, Finance, HR, Sales and Operations. Expect a lot of cut in these function lines. NXP and QCOM have few overlap in R&D except for few projects in Automotive and IOT.
NXP would be looking upto QCOM for increase in R&D spend in its core areas as it has been cutting down on its budget in the past few years. Hopefully QCOM can sustain its licensing model to fund more R&D in both companies.
If QCOM can weather this storm and work towards timely implementation of 5G and NXP expand its Automotive and IOT businesses then we have killer combination in our hands with sustainable businesses. The reality seems far stretched and short-mid term growth seems to be not promising
@oam in this particular case of M&A it's possible that layoff can be announced immediately because both firms lost time because of the things out of control. Investors have been waiting for this for a long time. Both stocks went down at every single bad news. Due to the delay both companies must have had enough time to calculate the next steps, one of which is layoffs. I think they will announce layoffs right after day one because investors don't have patience any more
CSR is highly overlapped to Q and N. More over majority of CSR employees are incompetent. It is the result of their toxic recruitment process. A 60 % of lay off recommended
Does anyone know if there is a blackout period for layoffs? Usually this is some concession made (ie no layoffs) for some time after a merger
It’s not possible to layoff people in Europe. Projects will be shut down, but the Company has to show that they can not financially afford the employee, and not just fire people because the project is gone.
Will NXP employees in Europe be laid off?
The great smoke screen that is NXP.
NXP + CSR + Q auto group = synergies ?
N needs Q more at this point. There will be cuts however to achieve the synergy targets.
Layoffs my friend. In both cases