Thread regarding NXP layoffs

Deutsche Bank technology call on 13th September

CFO also mentioned at the Deutsche Bank technology call on 13th Sep that "they probably have to sell some non-strategic low margin business" to achieve 57% margin. BTW the 1B$ these guys have received from investors quite recently, is a "bridge financing", i.e. the money is really short term, they have to give this money very soon. It seems N is running out of money in a couple of months for a "big strategic decision". I bet they will spin-off some businesses within 1 year, maybe by the end of the year. to give an idea what size the a spin-off would be: Nexperia (production part of N) was sold to 2B$ with 11.000 employees, after xFSL merge.

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The loan they got was at Libor+1.5% or a set minimum. So Barclays have hedged their bets in order to get what looks to me like a 4-4.5% loan term with a max libor period of 12months. Those are not great terms. All NXP have said is it is for general corporate or buyback purposes. If I were guessing I would say they are reorging that will incur severance costs or will purchase something and that would then be followed by enough cost savings/cutting/selling of assets to offset the loan terms.

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