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Qualcomm Inc has started laying off as part of its strategy to cut annual cost by $1 billion, the company said on Wednesday. It has been reported that the company is cutting jobs for both its temporary and full time employees, after evaluating the option of non-headcount expense reduction. The company said the headcount reduction has been undertaken for the long term growth of the company.
Employees who have lost their job will be given severance packages, which would help help sustaining in the jobless period. As of Sept 24th Qualcomm has about 33,800 full-time, part-time and temporary employees.
It has not been mentioned how many people will be asked to go but according to reports it will be a massive layoff and Qualcomm will have to file Worker Adjustment and Retraining Notification ( WARN) with the state of California. Companies are required to file and notify when they show pink slips to 50 or more employees within a period of 30-day.
The move has come, amid Qualcomm’s ongoing battle with Apple which started a year ago after a complaint from the FTC stating that Qualcomm was pushing Apple to use its baseband chips at higher royalties. Apple later filed $1 billion lawsuit against the chipmaker. Apple and its manufacturer are reportedly not making royalty payments to Qualcomm, which has affected company’s earnings. It was stated in a press release that its numbers were “negatively impacted as a result of actions taken by Apple and its contract manufactures.” It has also been reported that Apple has tied-up with Intel and MediaTek for future contracts. Qualcomm has asked for an import ban on iPhones that use Intel’s technology.
During the month of January, Qualcomm had announced that it would cut jobs through a series of targeted reductions in order to save $1 billion annually, in an attempt to have investors on its side against a hostile bid from rival Broadcom Inc . Trump government, however, later cancelled the bid citing national security grounds. The chipmaker has been streamlining its operations since then to improve revenue of the company.
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