Broadcom Corp has said that it is planning to cut around 1,150 jobs to reduce costs as the company records lower demand for its chips that connect mobile phones to the Internet.

The Irvine, California-based company said in a statement today that it expects its sales to be around $1.98 billion. The company might earn revenues of between of $1.92 billion and $2.03 billion while analysts were expecting the company to $2.13 billion in revenues, according to data compiled by analytics firm, Bloomberg.

Broadcom is the leader in chips market that provides short-distance wireless connections in devices such as Apple's iPhone and iPad. However, the company has been slow in releasing new technologies and this has made it difficult to retain customers. The company did not offer chips that support LTE, or long-term evolution and this may force customers to move to rival businesses.

The shares of the company fell to $24.80 in extended trading following the announcement of the results. The shares fell less than 1 per cent to $27.14 at the close in New York. The shares have fallen 18 per cent during this year.