Sat, 20 Oct 2018

Qualcomm lays off 1,000 employees, as part of cost cutting

By Sheetal Sukhija, Manchester News
19 Apr 2018, 20:39 GMT+10

CALIFORNIA, U.S. - In a bid to reduce its spending by $1 billion, to fulfill a promise made to shareholders by management, Qualcomm is reportedly laying off as many as 1,000 employees.

The chipmaker is said to have began layoffs at its hometown of San Diego on Wednesday, as part of an effort to reduce its spending by $1 billion.

According to reports, in California, a layoff of over 50 workers would require Qualcomm to file a WARN notice with the state, letting workers know that cuts are coming well ahead of taking any action. 

The company filings show that as of September 2017, Qualcomm had 33,800 employees, in both full and part time positions.

Further, during the company's 2017 fiscal year, it added around 3,300 of those roles.

Now, the 1,000 layoffs being implemented are reportedly set to affect around 3 percent of the company's global workforce.

Meanwhile, reports also pointed out that the layoffs by the chipmaker come just weeks after U.S. President Donald Trump issued an executive order preventing Broadcom, a Singapore-based competitor, from acquiring Qualcomm.

As part of its effort to rebuff the $117 billion hostile takeover, Qualcomm promised shareholders that it would cut its spending by $1 billion to make up for declining sales.

The deal was called off after Trump issued an executive order preventing Broadcom from buying Qualcomm on the grounds of national security.

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