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Comments (2)
It is definitely a shift in strategy rather than just routine overhead cutting. Management is obsessed with becoming a pure-play data center infrastructure company, so anything not directly tied to that narrative is on the chopping block. Those of us in peripheral product lines are essentially waiting for the other shoe to drop. It’s brutal to watch colleagues go, but the writing has been on the wall since they started tightening budgets last quarter. Expect more consolidation as they sacrifice legacy segments to inflate their AI-related margins.
I wouldn't read too much into it as a total company collapse, but the focus is clearly narrowing. They are pruning the dead weight to prioritize the custom ASIC business and cloud connectivity, which is where the real revenue growth is right now. It sucks for the folks in Miami, but this is standard procedure when a leadership team decides to pivot hard. Just keep your head down and focus on the data center initiatives if you want to stay safe for the next few cycles.