Qualcomm is reportedly going to cut 1500 jobs and has already started the process. The company apparently cut some jobs in California, in a bid to make $1 billion in savings that it had committed to investors. “We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” the company said in a statement to Bloomberg.
The promise to investors had been made back in January when Qualcomm pledged to improve its earnings by through a cost reduction plan that was “designed to align our cost structure to our long-term margin targets”. The move was designed to as part of its efforts to contain a hostile takeover bid from competitor Broadcom Inc.
For those uninitiated, this isn’t the first time smartphone-chip maker has cut jobs. Three years back, due to investor pressure, after pressure from an activist investor, the San Diego, California-based tech major announced a restructuring that resulted in thousands of layoffs.
According to reports, Qualcomm will be filing Worker Adjustment and Retraining Notification notices soon in California. This is mandatory for companies undergoing mass layoffs of more than 50 employees over a 30-day period. The company had also cut many jobs in 2015 and has been trying to catch up with sales drops for a few years now.
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