Qualcomm will layoff 1,258 staff in San Diego and Santa Clara, starting in December
Pointing to the continued poor gross sales efficiency of its cellphone chips, Qualcomm notified the California Employment Improvement Division that it plans to chop 1,258 positions in San Diego and Santa Clara, California, starting in December.
About 1,064 of its these staff can be culled from San Diego, whereas the remaining 194 can be in Santa Clara. In keeping with the corporate’s newer annual report, it at the moment employs 51,000 folks as of September 2022.
The information isn’t solely surprising as Qualcomm warned of potential layoffs in August in a submitting that mentioned “continued uncertainty within the macroeconomic and demand atmosphere.”
Particularly, Qualcomm reported a Q3 2023 whole income dip of 23% from the identical quarter final yr to $8.45 billion with handset income down 25% and IoT income down 24%. Consequently, CFO Akash Palkhiwala stated on an earnings name that the corporate is implementing “extra price actions within the first half of fiscal 2024.” A part of these actions, it seems, are workforce reductions.
In response its comfortable third quarter, Qualcomm CEO Cristiano Amon stated the corporate is specializing in its booming automotive enterprise, which throughout the quarter in query, continued to be a development driver with a 13% year-over-year improve to $434 million, in addition to the creating alternative round synthetic intelligence (AI).