Major semiconductor manufacturer Qualcomm plans to lay off over 1,200 employees, representing 2.5% of its total workforce.
Qualcomm to cut roughly 1,258 jobs in California
https://www.cnbc.com/2023/10/12/qualcomm-to-cut-roughly-1258-jobs-in-california.html
Qualcomm (QCOM) Cuts Jobs in California in Effort to Reduce Costs - Bloomberg
https://www.bloomberg.com/news/articles/2023-10-12/qualcomm-making-california-job-cuts-in-pledge-to-reduce-costs
Chipmaker Qualcomm to lay off over 1200 California workers | CNN Business
https://edition.cnn.com/2023/10/12/tech/qualcomm-layoffs/
Qualcomm says it will lay off more than 1,200 staff in California - SiliconANGLE
https://siliconangle.com/2023/10/12/qualcomm-says-will-lay-off-1200-staff-california/
In a filing with the California Employment Development Department on October 11, 2023, Qualcomm announced that it plans to lay off 1,258 employees, 1,064 in its San Diego office and 194 in Santa Clara. Did.
As of September 2022, Qualcomm had approximately 51,000 employees, and the number of people who will be fired this time is equivalent to approximately 2.5% of all employees. The layoffs are scheduled to take place on December 13th, and the positions to be laid off will range from engineers to legal advisors, human resources, and accounting.
Qualcomm Chief Financial Officer Akash Palkiwala reported in a conference with analysts in August that Qualcomm is facing declining revenue and is aggressively implementing additional cost-cutting measures. It indicated a policy to do so.
'We have previously announced that we would consider additional cost reduction measures as the environment continues to change, until we see signs of sustained improvement in fundamentals,' Palkiwala said at the August meeting. 'We do not assume that Qualcomm's business framework will recover immediately.'
Qualcomm is experiencing a decline in sales of its main product, smartphone chips, due to sluggish sales of mobile products worldwide. As a result, in the financial results for the second quarter of fiscal year 2023 (April to June) announced in August, sales were down 23% year-on-year to $8.451 billion (approximately 1.21 trillion yen). Reported .
Meanwhile, Qualcomm is trying to develop products in areas other than smartphones, such as automotive chips and VR headsets , but smartphone chips still account for the majority of sales.
In September 2023, it was announced that the contract to supply 5G-compatible modem chips to Apple smartphones was extended until 2026, but Apple has decided to develop its own 5G modem chips in order to reduce its dependence on Qualcomm. We are proceeding.
Apple extends its contract with Qualcomm until 2026 due to delays in developing its own 5G modem chip, what is going on? -GIGAZINE
When the overseas media CNBC contacted Qualcomm about this layoff, a representative pointed out that the company had already mentioned future personnel reductions in its financial report for the second quarter of 2023. 'As the macroeconomic and demand environment remains uncertain, we expect to undertake additional restructuring to enable continued investment in key growth and diversification opportunities,' he told CNBC. I commented.
Related Posts:
in Note, Posted by log1h_ik