Out of the 1,258 job cuts, more than 750 positions are from different levels of Qualcomm’s engineering ranks. The rest of the reductions cover a broad range of roles such as internal technical staff and accounting.
American largest chipmaker Qualcomm Inc (NASDAQ: QCOM) will lay off about 1258 employees in its California unit. According to a filing with the California Employment Development Department, as many as 1,064 of its San Diego employees and 194 of its Santa Clara employees will be subject to the reduction that will take effect from December 13.
When reached for a comment on the news, Qualcomm cited “uncertainty in the macroeconomic and demand environment” as a reason behind the need to restructure its headcount.
Qualcomm stated:
“While we are in the process of developing our plans, we currently expect these actions to consist largely of workforce reductions, and in connection with any such actions we would expect to incur significant additional restructuring charges, a substantial portion of which we expect to incur in the fourth quarter of fiscal 2023. We currently anticipate these additional actions to be substantially completed in the first half of fiscal 2024.”
Out of the 1,258 job cuts, more than 750 positions are from different levels of Qualcomm’s engineering ranks. The rest of the reductions cover a broad range of roles such as internal technical staff and accounting.
Back in August, the company was warning about the potential layoffs.
Chief Financial Officer Akash Palkhiwala said at that time:
“Given our commitment to operating discipline, we will proactively implement additional cost actions. Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery.”
Qualcomm is likely to see its revenue for the fourth quarter of 2023 and the full year to be down. In Q3 2023, Qualcomm reported a 23% revenue drop to $8.44 billion. For the fourth quarter, the revenue for Qualcomm is expected to be in the range of $8.1 billion to $8.9 billion. Besides, for the 2023 fiscal year, the company is expecting a 19% contraction in its revenue.
2023: Year of Layoffs
Massive layoffs have continued into 2023. As of today, the total of layoffs for 2023 based on full months to date is 240,193. The biggest cut rounds took place at the beginning of 2023. Last month, 4,632 employees were laid off. Tech giants like Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Meta Platforms Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) drove the layoffs.
Among the latest big layoffs we reported about was the one announced by Meta Platforms Inc (NASDAQ: META). The company is reportedly planning to lay off employees in Reality Labs – its business and research unit that produces virtual reality (VR) and augmented reality (AR) hardware and software.
Recently, a web-based survey and reports tools provider Qualtrics announced its decision to lay off about 780 people across the company, with “several hundred roles” changing or moving locations over the next year.
Online travel and fintech company Hopper has also cut 30% of its full-time staff, or around 250 employees, in a bid to reduce its expenses.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
