Mass layoffs at Qualcomm: Over 1,200 employees to lose jobs
Mass layoffs at Qualcomm are imminent, with over 1,200 employees set to lose their jobs.
Qualcomm, the world's leading mobile chipmaker, is responding to subdued demand for its products with a significant workforce reduction. The company is set to cut 1,258 positions in San Diego and Santa Clara, California, effective December 13.
Mass layoffs at Qualcomm: Over 1,200 employees to lose jobs
In a move that accounts for approximately 2.5% of Qualcomm's total workforce, over 750 of these job cuts are concentrated within the company's engineering department, spanning various roles from directors to technicians.
Despite CEO Cristiano Amon's attempts to broaden the product portfolio, Qualcomm is facing a 19% decline in revenue for the fiscal year. The company's predominant revenue source remains the mobile phone market, which is currently experiencing a slower recovery than anticipated.
Notably, a recent report indicates that Huawei is planning to fully adopt its self-developed Kirin processors from 2024, a transition that will pose a substantial challenge to Qualcomm.
Industry analyst Ming-Chi Kuo warns that this shift not only results in the loss of Huawei's orders from 2024 onwards but also exposes Qualcomm to a potential decline in shipments to other non-Huawei Chinese brand clients due to increased competition from Huawei. In 2022 and 2023, Huawei acquired 23-25 million and 40-42 million mobile phone SoCs from Qualcomm, respectively.
Qualcomm also contends with competition from tech giants like Samsung and Apple, both venturing into the development of their own mobile phone chips.
These layoffs at Qualcomm are indicative of a broader slowdown in the tech industry, with companies like Meta and Twitter also recently announcing workforce reductions. This deceleration is influenced by various factors, including rising inflation and supply chain disruptions.
Qualcomm has emphasized that these layoffs are a necessary step to sustain investments in key growth and diversification opportunities, given the prevailing uncertainty in the macroeconomic and demand environment.
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