Broadcom Inc. named board member Alan "Lanny" Ross, a retired executive with extensive experience in the semiconductor industry, to the newly created position of chief operating officer.
The Irvine-based chip company, which last month announced a restructuring to cut costs, said Ross' role will be to recruit senior executives and handle internal operations. He will hold the position on an interim basis.
Broadcom said last month that it planned to cut operating expenses by 10% to 12%, including an unspecified number of jobs, as part of a restructuring designed to focus on its best-performing businesses. The company posted a $2.7-billion loss last year amid the industrywide slump.
"We are going to take significant cost-cutting actions, so my first priority is to get that executed on a timely basis," Ross said.
The company expects to complete the cuts by the end of the quarter, he said.
The appointment will allow Chief Executive Henry Nicholas to focus on strategy and customer transactions, the company said.
Ross retired in 1996 as president of Rockwell International Corp.'s telecommunications group, which included the chip business that later was spun off into Newport Beach-based Conexant Systems Inc.
He previously held senior positions at National Semiconductor Corp. and Fairchild Semiconductor International Inc. He joined Broadcom's board in 1995.
Analysts praised the decision, saying Broadcom needs well-seasoned management to handle its growth and challenging times now and ahead.
Broadcom shares rose 59 cents, or 5%, to $11.91, on Nasdaq.