Qualcomm Cuts Jobs to Boost Profit

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As part of its effort to rebuff the $117 billion hostile takeover, Qualcomm promised shareholders that it would cut its spending by $1 billion to make up for declining sales.

While the majority of the cuts will take place at the company's California headquarters, one of the sources said that some positions will be eliminated in other locations.

In a statement, a Qualcomm spokesperson said that the board "first evaluated non-headcount expense reductions" but ultimately concluded that cutting staff would lead to "long-term growth and success".

Qualcomm employs an estimated 34,000 full-time personnel globally, who work out of the firm's 177 worldwide offices.

This stems from Qualcomm's pledge to improve earnings, which was made back in January.

The Trump administration blocked Broadcom's buyout on national security grounds.

Bloomberg, which first reported the layoffs, said the size of the job cuts is large enough that Qualcomm will have to file a WARN notice, or Worker Adjustment and Retraining Notification, with the state of California. The losses were mainly due to a $6 billion charge caused by USA tax reform, and a $1.2 billion charge imposed by the European Commission. The problems began when Federal Trade Commission in the U.S received a complaint citing that Qualcomm was forcing Apple to use its chips at higher royalties.

Earlier this month, Qualcomm announced a range of Internet of Things (IoT) and artificial intelligence (AI)-optimized system on a chip (SoC) platforms.

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