Qualcomm to cut 1,258 jobs, affecting 2.5 percent of its workforce.
No facility closures in San Diego and Santa Clara locations.
Company foresees further restructuring amid economic uncertainty and industry changes.
Qualcomm is all set to cut hundreds of jobs. The company has confirmed that the layoffs will take place in December this year. In its recent filings with the California Employment Development Department, Qualcomm asserted that around 1,064 San Diego-based employees and 194 Santa Clara-based employees will be affected by the layoffs. This is about 2.5 percent of their total employee count.
A report from CNBC revealed that Qualcomm will start layoffs on December 13 in both locations. Crucially, Qualcomm emphasized that there would be no facility closures at either of these locations, reassuring the local communities.
In response to inquiries about this move, Qualcomm referred to its last quarterly earnings report, where it had foreseen workforce reductions and restructuring charges. The company stated, “Given the continued uncertainty in the macroeconomic and demand environment, we expect to take additional restructuring actions to enable continued investments in key growth and diversification opportunities.”
“While we are in the process of developing our plans, we currently expect these actions to consist largely of workforce reductions, and in connection with any such actions, we would expect to incur significant additional restructuring charges, a substantial portion of which we expect to incur in the fourth quarter of fiscal 2023. We currently anticipate these additional actions to be substantially completed in the first half of fiscal 2024,” the company added.
Despite this significant announcement, Qualcomm’s stock prices remained relatively stable throughout the day. The news of job cuts by a prominent tech company like Qualcomm raises concerns about the broader economic climate and the semiconductor industry’s challenges. It also highlights the continuing impact of the COVID-19 pandemic on the job market, as many companies reassess their workforce and financial strategies to adapt to evolving conditions. Qualcomm’s decision reflects a commitment to remaining competitive and agile in a rapidly changing industry landscape, as it aims to invest in key growth areas while making necessary workforce adjustments.
As these layoffs unfold in December, the affected employees and the tech industry as a whole will be closely watching Qualcomm’s future actions and the potential impact on its operations and product development in the coming months. As of now, it is unclear whether the company will be giving compensation to the employees who will be asked to leave the company. Since last year, most of the tech companies that laid off thousands of employees have offered severance pay to impacted ones.