Qualcomm began cutting jobs in California, with the goal of letting about 1,500 people go to fulfill a $ 1 billion commitment that the company made to investors, reports Bloomberg. Job cuts are concentrated in California, but layoffs will also occur elsewhere. The company currently employs around 33,800 people worldwide.
"First we evaluated the reductions of expenses not by count, but we concluded that a reduction of the work force is needed to support the growth and the long-term success, which will ultimately benefit all our stakeholders," Qualcomm said in a statement. to Bloomberg. In January, Qualcomm committed to improving profits by reducing its expenses by $ 1 billion through a cost reduction plan "designed to align our cost structure with our long-term margin goals."
Qualcomm must file the Worker Adjustment and Retention Notice notices in the next few days in the state of California, which will probably give you more information about the layoffs. WARN notices are mandatory for companies that suffer massive layoffs of 50 or more employees within a 30-day period. It also requires the company to give affected employees 60 days in advance that they will be let go. Qualcomm will offer compensation for dismissal to those affected by the dismissals.
Qualcomm closed thousands of jobs in 2015 and has had problems with the drop in sales in recent years. In January, Qualcomm was hit by a $ 1.2 billion fine from the EU for violating antitrust laws in a series of agreements with Apple. Qualcomm was also the subject of a tumultuous takeover bid by Broadcom for several months, but it was canceled after US President Donald Trump blocked the deal in March for reasons of national security.