Qualcomm has resolved to lay off 1,258 employees
In August of this year, Qualcomm unveiled its financial results for the third quarter of fiscal 2023 (ending June 25, 2023), and the figures were somewhat disheartening. Mobile chip operations, a predominant segment for Qualcomm, suffered due to a stagnating consumer electronics market and dismal sales of Android-based devices. Consequently, revenues plummeted by 25%, amounting to $5.26 billion, casting a shadow over the firm’s overall performance. In its quarterly report submitted to the U.S. Securities and Exchange Commission (SEC), Qualcomm, recognizing the profound market volatility, is contemplating cost-cutting measures, including workforce reductions.
According to CNBC, Qualcomm has resolved to lay off 1,258 employees, approximately 2.5% of its current workforce, which stands close to 51,000 individuals. The layoffs are predominantly concentrated in California. As per the documents submitted to the California Employment Development Department, the San Diego region is set to lose 1,064 positions, while the Santa Clara region will see a decrease of 194. Roles affected span engineers, legal consultants, accountants, and human resources professionals, with the restructuring anticipated around December 13th of this year.
Given local regulations necessitating companies to report impending layoffs to the pertinent authorities, Qualcomm’s intentions inadvertently came to light. Just last month, whispers of potential cuts emerged from Qualcomm’s R&D division located in Shanghai, suggesting that the layoffs might be a global initiative. In truth, facing global economic deceleration and a flagging consumer electronics market, numerous tech industries this year have opted for layoffs as a means to pare down expenses.
Previously, Qualcomm’s Chief Executive, Cristiano Amon, articulated a conservative stance towards market projections. He emphasized proactive cost-cutting measures, allocating resources prudently to sectors promising future growth and diversification opportunities.
