Qualcomm announced the reduction of 1,258 jobs in California, reports Bloomberg. This represents about 2.5% of the company’s total number of employees (50 thousand people). However, these cuts will only affect Qualcomm’s San Diego and Santa Clara offices. According to Bloomberg, the cuts will occur across departments: more than 750 engineering employees, including management staff, with the remaining positions scattered across various departments, including technical and accounting staff.
The company is required by law to notify the California agency of upcoming layoffs. However, it is unclear whether Qualcomm plans to cut employees in other offices, both in the US and abroad. It’s worth noting that these cuts are expected—the company previously mentioned a planned restructuring in its earnings report.
Qualcomm has acknowledged that a major part of this restructuring will be mass layoffs. The company said this will allow it to continue investing in key growth areas amid “continued uncertainty in the macroeconomic environment.”
As Bloomberg notes, Qualcomm still receives most of its revenue from smartphone sales, while the market continues to lose ground. Global smartphone shipments this year could be the worst in a decade, analysts say. As a result, Qualcomm’s annual revenues could decline by 19%.
Staff reductions will begin in mid-December, and the company plans to complete all restructuring changes in the first half of fiscal 2024.
2023-10-13 15:30:00
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