In a bid to reduce costs by $1 billion, San Diego-based chipmakers Qualcomm is now starting to cut jobs mostly from California. The total positions to be cut will reach to around 1,500 jobs in California, although the company has revealed that they will also be laying off employees in other locations. This process is the follow through coming from the company’s commitment to its investors to reduce expenditures by the number stated above.
Qualcomm has confirmed through an emailed statement that it is reducing its full-time and temporary workforce, although they did not specifying the exact locations or numbers. “We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” Qualcomm said in the statement. The company that it will be offering severance packages to those affected by the layoff.
In January this year, executives of Qualcomm pledged to cut costs by $1 billion in a bid to improve earnings. The company was in the brink of losing to a hostile takeover bid from rival Broadcom Inc., had the Trump administration not disqualified the deal on the grounds that it would pose a national-security risk. Qualcomm’s management team is now going through the process of living up to its promise of increasing earnings.
Because of the cutthroat nature of the market Qualcomm is in, the company has posted a decline in sales every year since 2015. These numbers are again projected to decline 3 percent in fiscal 2018.
SOURCE: Bloomberg
