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Qualcomm to cut back workers in China amid dwindling smartphone demand

The Qualcomm R&D facility in Shanghai, China opened in 2010 and employs practically 400 workers

Whereas Qualcomm has denied rumors that it plans to close its Shanghai R&D facility or enact “large-scale” layoffs in China, it did reveal that may scale back the ability’s workers, citing weak demand for smartphones and the nation’s slowing financial system.

The Shanghai facility opened in 2010 and employs practically 400 workers. The chip firm informed Chinese language information outlet Yicai International that the influence gained’t be a lot of a lower, however as a substitute, extra like a job trim. Many of the layoffs, stated Qualcomm, will happen this quarter and the remainder will observe over the following six months.

China is experiencing ongoing stoop in smartphone demand, and extra pointedly, the federal government has banned its officers from utilizing Apple’s iPhone, with additional reaching bans rumored — though not confirmed — threatening to vastly influence Qualcomm, which provides iPhone modem chips.

Additional, U.S. sanctions limiting the sale of superior chips in China have additionally affected Qualcomm’s enterprise as its main Chinese language prospects akin to Huawei and ZTE have been pressured to chop orders.

“As time strikes ahead, the U.S. ban means Chinese language corporations like Huawei and ZTE are pressured to search out new methods to satisfy their very own wants,” wrote Analyst Jeff Kagan. “Since Huawei can’t do enterprise with Qualcomm any longer, they’re discovering different methods to satisfy their wants with 5G chips and HarmonyOS, which replaces Google Android.” 

Qualcomm additionally has an R&D facility in Beijing, and places of work in additional than 12 Chinese language cities.



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