Qualcomm announces 1258 layoffs in California to reduce costs

On October 13th, Qualcomm, the world's largest smartphone chip manufacturer, announced that it will lay off employees to cope with the sluggish demand for its main products.According to documents submitted by Qualcomm to the California Department of Employment and Development, the company will cut 1258 positions in San Diego and Santa Clara, California

On October 13th, Qualcomm, the world's largest smartphone chip manufacturer, announced that it will lay off employees to cope with the sluggish demand for its main products.

According to documents submitted by Qualcomm to the California Department of Employment and Development, the company will cut 1258 positions in San Diego and Santa Clara, California. Qualcomm representatives declined to comment on the overall scale of the layoffs.

Qualcomm stated in the document that it will lay off approximately 1064 San Diego employees and 194 Santa Clara employees. But neither of these offices will close any facilities.

According to Qualcomm's latest annual financial report, as of September 2022, the company had approximately 51000 employees, resulting in approximately 2.5% of its total employees being laid off.

Among the dismissed positions, more than 750 came from Qualcomm's engineering department, including supervisors, technical personnel, etc. The remaining layoffs encompass a wider range of positions, such as internal technical personnel and accountants.

Qualcomm stated in the notice that the layoffs will take effect on December 13th. According to California regulations, this San Diego based company must submit an application in advance.

Qualcomm Chief Financial Officer Akash Palkhiwala told analysts in August that the company will "actively implement additional cost reduction measures".

He said in a conference call, "We have previously stated that as the environment continues to change, we will evaluate additional cost reduction actions. We do not believe that the economy will recover immediately until we see signs of continued improvement in fundamentals

Qualcomm is expected to release its latest financial report next month, with revenue expected to shrink by approximately 19% this fiscal year. Although Qualcomm CEO Cristiano Amon is trying to push the company's products into new areas, the majority of its sales still come from the mobile phone market. The demand for Apple's iPhone, especially in China, has not rebounded as quickly as some predict.

On Thursday, local time in the United States, Qualcomm's stock price rose 0.3% to close at $111.45 per share. As of Wednesday's close, the stock has risen 1% this year, far behind the nearly 40% increase in the Philadelphia Stock Exchange Semiconductor Index. (Small)