CNBC reported that chip giant Qualcomm will lay off approximately 1,258 employees at two offices in California. Qualcomm had about 51,000 employees as of September 2022, according to the company’s last annual financial report.
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According to reports, Qualcomm submitted a document to the California Employment Development Department, which showed that the company will lay off approximately 1,064 employees in San Diego and 194 employees in Santa Clara. The layoffs in both locations will be around December 13 Take effect.
Under the local Worker Adjustment and Retraining Notification Act, companies must give employees 60 days’ notice before laying them off.
Specifically, the layoffs will include several senior managers and hundreds of engineers, as well as some positions such as vice president of engineering, business analysts, assistants and product managers. In addition, eight San Diego-based vice presidents will also be laid off. However, neither location involved in the layoffs will close any facilities.
When CNBC contacted Qualcomm for comment, Qualcomm said that in its last quarterly financial report, the company had already stated that it expected to lay off employees and pay related restructuring costs.
It was previously reported that in the first half of this year, Qualcomm announced it would lay off 415 people from its San Diego headquarters after California submitted Worker Adjustment and Retraining Notification Act (WARN) documents, according to the San Diego Union-Tribune.
On top of that, the company laid off 84 employees in the Bay Area at the time as it tried to shore up its finances after smartphone sales slowed, especially in China.
In order to reduce layoffs and losses, Qualcomm is trying to diversify its business beyond smartphones, tablets and modems, such as delving into the automotive industry, where it is said to have a large backlog with automakers for various applications. Including intelligent infotainment systems and in-car driving. However, since the smartphone market generates most of Qualcomm’s revenue, it has to make some tough decisions.
According to a report by Taiwan’s Economic Daily in August this year, there are reports in the industry that Qualcomm has recently launched a price war to target mid- to low-end 5G phone chips, with price cuts as high as 10% to 20%, in order to stimulate customers’ willingness to buy goods and speed up clearance. in stock. Qualcomm’s price cuts are expected to continue into the fourth quarter.
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