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Qualcomm Incorporated will lay off 1,258 employees across two California offices, according to recent filings with the Employment Development Department of California. The move follows indications of workforce reductions in the company's latest quarterly report.
As of September 2022, Qualcomm has around 51,000 workers, so these job terminations will reduce the company’s workforce by 2.5%. These figures were also sourced from the said filing with the EDD.
The Offices Affected by the Job Cuts
According to CNBC, Qualcomm sent out its notification for the layoffs on Wednesday, Oct. 12. Two cities were also informed about the imminent job cuts, and these are San Diego, where 1,054 workers are affected and Santa Clara, where 194 company employees are set to lose their jobs.
Based on the firm’s announcement, the terminations in the two California cities are all taking effect on Dec. 13. While there will be layoffs, the company clarified that facilities will not be closed. It was also noted that Qualcomm already hinted during its most recent quarterly earnings report that there will be workplace reductions and restructuring within the firm.
“With the continued uncertainty in the macroeconomic and demand environment, we expect to take additional restructuring actions to enable continued investments in key growth and diversification opportunities,” the chipmaker said in a statement.
Reason for the Workforce Reduction
In a call with analysts in August, CNN Business reported that Qualcomm’s chief financial officer, Akash Palkhiwala, said they will take aggressive measures to trim down costs. He explained that the company is facing declining sales revenue, and the job cuts in December are surely one of the actions the management has planned to reduce its expenses.
“Given our commitment to operating discipline, we will proactively implement additional cost actions,” the CFO said during the August call. “Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery.”
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