Layoffs At Qualcomm: Over 1200 Positions On Chopping Block As Smartphone Chip Demand Takes A Dive – Qualcomm (NASDAQ:QCOM)

Within the face of dwindling demand for its core product, smartphone chip manufacturing large Qualcomm Inc. (NASDAQ:QCOM) has declared sizable job reductions.

What Occurred: As reported by Bloomberg, Qualcomm can be shedding 1,258 staff, primarily in its San Diego and Santa Clara bases. The general impression on its 50,000-strong workforce, nonetheless, has not been disclosed by the corporate.

Among the many positions being reduce, over 750 belong to the engineering departments of Qualcomm, with positions starting from director to technician roles. The remaining layoffs will span throughout numerous departments resembling inner technical employees and accounting, Bloomberg studies.

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These job reductions are scheduled to start in mid-December, as said within the firm’s notifications to the California Employment Growth Division.

Why It Issues: Qualcomm’s CFO, Akash Palkhiwalahad beforehand hinted on the probability of cost-cutting measures throughout an analyst name in August.

The chipmaker, which is about to announce its earnings subsequent month, is predicted to witness a 19% contraction in its income for the present fiscal yr. Regardless of CEO Cristiano Amon‘s efforts to diversify the product vary, Qualcomm’s major income continues to be derived from the telephone market, which has not rebounded as rapidly as anticipated.

In response to the information, Qualcomm’s shares closed the session 0.3% greater. Yr-to-date, the inventory has seen a meager 1% progress, significantly lagging behind the VanEck Semiconductor ETF (NASDAQ: SMH) which has rallied by practically 47%.

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