As SemiMedia reported on April 16, Qualcomm may execute a layoff recently, now this news been confirmed. Qualcomm had officially confirmed that the company was cutting jobs and currently refused to disclose the number of layoffs. According to several Qualcomm employees, in San Diego alone, Qualcomm plans to lay off more than 1,000 people. Qualcomm has a total of 33,800 employees worldwide and one-third of them in the San Diego area.
Qualcomm said in a statement earlier: "As part of the cost reduction plan announced in January this year, the company is cutting down its full-time employees and temporary workers." In January, Qualcomm announced plans to cut operating costs by $1 billion. Reduce labor force to support long-term growth, in order to win the investor's vote in the shareholders' meeting.
Qualcomm’s layoffs are to deal with several unfavorable factors, including Broadcom’s hostile takeovers, legal disputes with Apple, and the anti-monopoly supervision issues facing the world. In the fourth quarter of 2017, the profit of Qualcomm has dropped by 90%. Since 2015, Qualcomm's sales have been declining year by year, and it is expected to reduce by 3% in fiscal year 2018. The Qualcomm management team must now honor its commitments and resolve other issues that affect revenue and profit growth.
Qualcomm originally hoped to avoid layoffs while cutting costs, but it was counterproductive. "We first evaluated non-redundant cost-cutting measures, but the results show that to support long-term growth and success, layoffs are necessary." Qualcomm said.
At present, Qualcomm has issued a "WARN Notice" to the regulatory authorities in California, that is, staff adjustments and retraining notices, and officially announced plans to lay off staff.