October 16, 2023 /SemiMedia/ -- According to reports, Qualcomm plans to lay off 1,258 employees in San Diego and Santa Clara, California to cope with low demand.
The report pointed out that the layoffs will begin in mid-December. Among the employees being laid off, more than 750 are from Qualcomm's engineering department, ranging from supervisors to technical staff levels. The remaining cuts will come from in-house technical staff and accounting positions.
Demand for smartphones, the main application of Qualcomm chips, is weak. Although Qualcomm CEO An Meng is trying to push Qualcomm's products into new areas, most of the company's sales still come from the mobile phone market. Qualcomm said it is taking steps to reduce expenses and has already begun laying off employees.
Last quarter, Qualcomm recorded $285 million in restructuring charges, mostly from severance pay, and expects to make more layoffs.