Chip maker Qualcomm has pretty much dominated the smartphone space in recent years, but the company faces growing competition from rivals including MediaTek, Intel, Samsung, and Apple. The company’s latest flagship processor, the Snapdragon 810, has also been getting mixed reviews.
So maybe it shouldn’t be a huge surprise that the company is considering some big changes.
Qualcomm plans to cut costs by $1.4 billion by eliminating jobs and “reducing annual share-based compension grants” by about $300 million.
Qualcomm reported third-quarter financial results today, and while the company’s earnings were a bit better than some had expected, the company reported a small loss for the period.
All told, the company plans to cut its workforce by about 15 percent, which means as many as four thousand jobs could be eliminated.
Qualcomm also plans to reduce its number of offices and shift some of its resources to lower-cost regions.
The changes are expected to be completed by the end of the 2016 fiscal year.
Management failure. Too many people were hired. I don’t think the people responsible for the excessive hiring will be fired.
That’s unfortunate. I hope Qualcomm somehow gets their next SoCs or other departments more competitive so the final job cut number becomes less than projected. For the ones who do end up losing their job, hopefully, other companies will put their talents to good use. They were hired by Qualcomm after all. They should be top tier employees unless they were the ones who made the decisions causing Qualcomm to lose to their competition (then again, those guys might not lose their jobs).
Lets see, competition is catching up so we cut staff? I hope none of those layoffs are in R&D. If they are, it is a very shortsighted move.
Mediatek has been coming out with a bunch of new designs QC should have seen this coming and hedged on the lowend
i hope qualcomm becomes more open to selling in low volume. seems that linux support is pretty good for their socs
Nah, at least not until they get rid of the greedy MBA’s with their noses in the air and the swarms of lawyers with their ball-and-chain NDA’s.
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