Marvell Technology (NASDAQ:MRVL) is reducing its workforce by 4%, or nearly 320 jobs, owing to a slowdown in chip demand. As per a Bloomberg report, the company informed employees about the layoffs on Tuesday.
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Marvell provides data infrastructure semiconductor solutions for computing, networking, security, and storage purposes.
The move marks Marvell’s first major attempt to control costs by trimming headcount. In October 2022, Marvell cut only certain R&D roles from its China operations.
It is worth highlighting that the company expects its first-quarter revenue of $1.3 billion to decline year-over-year due to slowing chip demand and a challenging macro environment.
Meanwhile, several tech companies continue to announce layoff plans because of recession fears. Recently, Amazon (AMZN) said that it will eliminate an additional 9,000 employees after initially announcing an 18,000 job cut. Furthermore, last week Meta Platforms (META) revealed plans to eliminate 10,000 more jobs.
Will Marvel Stock Go Up?
On TipRanks, MRVL stock’s average price target of $55.35 implies 34.6% upside potential from the current level. Overall, the stock has a Strong Buy consensus rating based on 20 Buys and two Holds. Shares of the company have advanced 14.5% so far in 2023.
