Qualcomm to Lay Off 1258 Employees in Response to Sluggish Demand for Smartphone Chips

Recently, Qualcomm, the world's largest smartphone chip manufacturer, has announced its decision to lay off employees due to sluggish demand for its core products.

Official documents submitted by Qualcomm to the California Employment Development Department reveal that the company will eliminate a total of 1,258 positions in San Diego and Santa Clara, California. However, Qualcomm representatives have chosen not to disclose the overall magnitude of the layoffs.

According to the filing, approximately 1,064 employees in San Diego and 194 employees in Santa Clara will be affected by the workforce reduction. It's important to note that no office closures are planned as a result of these layoffs.

Qualcomm's most recent annual financial report, issued in September 2022, indicates that the company currently employs around 51,000 individuals. Therefore, these layoffs represent roughly 2.5% of its total workforce.

The majority of the job cuts, more than 750 positions, will come from Qualcomm's engineering department, affecting supervisors, technical staff, and others. The remaining positions being eliminated encompass various roles, including in-house technicians and accountants.

The layoffs are scheduled to take effect on December 13, as stated in the notice provided by Qualcomm. The company, based in San Diego, is required to comply with the advance application process outlined by California regulations.

In August, Qualcomm's Chief Financial Officer, Akash Palkhiwala, informed analysts that the company would proactively implement additional cost-cutting measures. He emphasized the need for ongoing evaluation of cost reduction actions, stating that an immediate economic recovery is not anticipated until there are sustained improvements in market fundamentals.

Qualcomm's latest financial report is set to be released next month, with an expected decline of approximately 19% in revenue for the current fiscal year. While Qualcomm CEO Cristiano Amon aims to expand the company's product offerings into new sectors, a significant portion of its sales still stems from the mobile phone market. The demand for Apple's iPhones has not rebounded as swiftly as previously predicted.