Qualcomm will slash around 1,500 jobs from its California workforce as it aims to reduce costs in a turbulent business environment, Bloomberg reported.
A Qualcomm representative told Mobile World Live the job cuts are part of a $1 billion cost elimination plan announced in January which is meant to boost shareholder earnings. The company explored other cost saving options, but “concluded that a workforce reduction is needed to support long-term growth and success,” the representative added.
Both full-time and temporary employees will be impacted by the cuts. Qualcomm said it is offering “supportive severance packages” to those let go.
The move comes as Qualcomm faces pressure on its business on several fronts.
Though the company recently escaped a hostile takeover bid by Broadcom thanks to intervention by President Trump, it remains embroiled in an ongoing legal battle over royalties with Apple. The smartphone vendor and its suppliers have been withholding royalty payments as the case drags on, and rumours swirled Apple may stop using Qualcomm chips in its devices altogether going forward.
Qualcomm is also facing the loss of business from Chinese smartphone vendor ZTE after the latter had its export permission revoked by the US Department of Commerce.
Additionally, Qualcomm’s acquisition of NXP Semiconductors lingers in limbo, pending permission from regulators in China. The deal already received approval from eight of nine global regulators, but uncertainty about whether Qualcomm will overcome its final hurdle has grown with rising tensions between the US government and China.