Chipmaker Marvell Technology said it would cut about 17% of its global workforce as the company trims its mobile business.
Shares of the Hamilton, Bermuda-based company rose 8% to $9.75 in after-market trading yesterday.
The company's mobile and wireless business makes connectivity chips, and processors for smartphones and tablets.
Marvell said it would now focus on emerging opportunities in businesses such as automotive and Internet of things, the concept of connecting household devices to the Internet.
The company said on 11 September a slowdown in the personal computer market had led to a weaker-than-expected demand for its hard-disk drive products.
Marvell had a total of 7 163 employees at the end of January.
The chipmaker said yesterday that it expects to take a charge of $100 million to $130 million related to the restructuring.
The restructuring is currently expected to result in annualised operating savings of $170 million to $220 million, the company said.
Marvell on 11 September disclosed an accounting probe that led to the sharpest drop in the stock in 14 years.
Up to yesterday's close, the stock had fallen about 38% this year.
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