This Content Is Only For Paid Member
In a strategic move to enhance cost-efficiency, Qualcomm is set to eliminate 1,258 positions in California, spanning across San Diego and Santa Clara. These workforce adjustments were revealed in submissions made to the California Employment Development Department. Notably, Qualcomm has not disclosed the full scope of these reductions within its 50,000-strong workforce.
Of the positions being cut, over 750 pertain to Qualcomm’s engineering roles, spanning from director-level positions to technicians. The remaining reductions will impact a diverse range of roles, including internal technical staff and accounting personnel.
The process of downsizing will commence around mid-December, in compliance with California regulations, which mandate such filings for job cut notifications. These regulations, however, do not extend to the company’s other locations.
Qualcomm’s Chief Financial Officer, Akash Palkhiwala, hinted at these cost-saving measures back in August when he stated the company’s intention to “proactively implement additional cost actions.” He further emphasized, “We had previously communicated we would evaluate additional cost actions as the environment continues to evolve. Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery.”
Qualcomm, which is due to report its earnings next month, is currently navigating a challenging fiscal year with an expected revenue reduction of around 19%. Despite Chief Executive Officer Cristiano Amon’s efforts to diversify Qualcomm’s product portfolio into new segments, the majority of the company’s revenue still derives from the smartphone market. Demand for such devices, particularly in China, has not rebounded as rapidly as some had initially anticipated.
At the time of this report, Qualcomm’s shares remained relatively stable at $111.10 as of 3:05 p.m. in New York. The stock has demonstrated a modest 1% increase in value throughout the year, contrasting with the impressive 40% rally observed in the Philadelphia Stock Exchange Semiconductor Index until the close of Wednesday’s trading session.
