Qualcomm begins cost reduction regime with widespread job cuts
Qualcomm is treading on iffy ground with investors following the dissolution of Broadcom’s bid to acquire the chipmaker. Investors who are looking for higher returns are wondering what the San Diego-based company can do to render more dividends.
The company has answered in part by announcing cuts to full-time and temporary positions as part of a mission to reduce annual costs by $1 billion.
“We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” Qualcomm stated to Bloomberg.
The company had reported 33,800 employees as of September 24. Severance packages have been given to departing members. The company’s last round of layoffs in 2015 saw the ax fall on about 1,000 positions.
California state law requires companies laying off 50 or more employees within a 30-day period to issue Worker Adjustment and Retraining Notifications. Specific details on this round of job cuts are expected when the WARNs get filed in the next few days.