In a move to save money and cut costs of up to $1 billion, SoC maker Qualcomm will lay off over 1,500 of its employees. The chip-maker will be laying off 1,231 people in San Diego, and another 269 in Northern California. Qualcomm alerted those affected by the layoffs on Wednesday.
The San Diego Workforce Partnership received notice of the cutback in the workforce on Thursday through mandatory 60-day notices received. The layoffs will take effect on Tuesday, June 19. Prior to the reduction in workforce, Qualcomm employed close to 47,000 people. San Diego housed about 13,000 of those employees with the rest working across the globe.
The Snapdragon maker cut a similar number of jobs in its last restructuring in 2015. The company came to the conclusion that layoffs were the best way to cut costs despite looking at other avenues. They said in a statement:
“We concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all of our stakeholders.”
Rival company Broadcom had made moves to buy the chipmaker in a hostile takeover. However, United States President Donald Trump and his administration blocked the buyout. Trump’s administration cited national security reasons for blocking the move. Broadcom would have been the third largest chip-maker in the world, had the buyout been approved, behind Apple and Samsung.
Qualcomm investors are worried though, as the company continues to fight a long-running legal battle with Apple. Not only that, but the company is looking at several large fines from various governments around the world. Qualcomm has said that it will fight those fines.
Even so, the news of layoffs following the blocked buyout certainly doesn’t bode well for the company, despite the canned optimistic response. What are your thoughts on the workforce reduction? Are you worried that you won’t see a Snapdragon processor powering your mobile device in the future? Let us know in the comments below or on Google+, Twitter, or Facebook.Source: San Diego Fox 5