According to filings with the California Employment Development Department, Qualcomm plans to lay off 1,258 workers in two California offices.
The chipmaker revealed that 1,064 jobs will be eliminated in San Diego, where its headquarters are located, and an additional 194 jobs will be eliminated in its Santa Clara offices.
Qualcomm plans to lay off 1,258 Workers
Qualcomm currently employs over 51,000 people, so this reduction represents approximately 2.5% of the company’s total workforce.
The primary reason for these job cuts is a decrease in revenue, which is primarily due to a slow performance in the company’s chip business during the third fiscal quarter.
The positions will be vacated by December 13, according to Qualcomm’s filing, and the company has also disclosed plans for further restructuring.
These initiatives will go into effect in the fourth quarter of fiscal 2023, kicking off calendar year 2024.
Qualcomm is dealing with declining revenues, which are primarily due to the ongoing uncertainty in the macroeconomic and demand landscape.
In a related development, analyst Ming-Chi Kuo recently revealed that Qualcomm could lose a key client in the form of Huawei.
The Chinese manufacturer purchased over 40 million SoCs from Qualcomm in 2023, but it is shifting to local partners for its 2024 and future needs.
According to reports, Qualcomm could lose up to $10.8 billion after severing ties with Huawei.
The Chinese phone manufacturer purchased 20 million Qualcomm chips in 2022 and over 40 million this year. It remains to be seen how Qualcomm will avoid losing one of its most important customers.
To read our blog on “Qualcomm Snapdragon 7s Gen 2 now handy for low-cost phones,” click here