Qualcomm, a global semiconductor manufacturer, will announce company-wide layoffs affecting 5% of its workforce in its upcoming quarterly report, due on May 3.
“In the quarterly results, the company will declare 5% layoffs across the organization. This is due to a decline in sales and the ongoing tech slowdown, and while all players were cutting jobs globally, Qualcomm was evaluating the situation and its strengths before making the decision
In addition, insiders have revealed that the majority of the layoffs will affect Qualcomm’s mobile division, with approximately 20% of its mobile division employees being let go.
“After conducting an assessment, [the company] determined that the mobile division must be realigned, so 20% of the positions will be eliminated. “The majority of jobs will leave the mobile division,” a source said.
In light of the current economic climate, Qualcomm has decided to lay off 5% of its workers.
Sources reached out to Qualcomm for official confirmation and comment on the matter. The company responded to the inquiries and provided a statement made by CEO Cristiano Amon during the February 2023 earnings call.
Given the present macroeconomic and demand conditions, we are implementing additional spending cuts and streamlining operations without losing sight of the significant growth and diversification opportunities that lie ahead.
This is consistent with our commitment from our last earnings call to actively manage operating expenses. In conjunction with the actions we have already taken in the quarter, we expect to reduce non-GAAP operating expenses by approximately 5 percent relative to a run rate at the end of fiscal ’22,” Qualcomm’s CEO stated.
According to Sources, Qualcomm has confronted difficulties because smartphone sales have declined. “The decline in smartphone sales over the past few quarters has affected Qualcomm, and the company is adjusting its resources,” a source explained.
Qualcomm’s quarterly net income decreased by 34% year-over-year (YoY) and its quarterly revenue decreased by 12% compared to the prior year. This was primarily attributable to the macroeconomic slowdown and a decline in demand for mobile devices, which had a direct impact on the company’s chip manufacturing operation, a significant revenue generator.
As reported by the data analysis firm International Data Corporation in January, global smartphone shipments are expected to decline by 11.3% in 2022. Smartphone manufacturers have consequently become more cautious. In its most recent report, the research firm predicts that global smartphone shipments will decrease by 1.1% in 2023.