Qualcomm (NASDAQ:QCOM), the chip-making giant, has announced plans to lay off approximately 1,258 employees at its San Diego and Santa Clara facilities, according to a recent filing with the California Employment Development Department. The layoffs, expected to take effect on December 13, account for about 2.5% of Qualcomm's total workforce of over 51,000 individuals.
The job cuts announcement followed a downturn in the company's shares, influenced by a negative fiscal Q4 outlook and a decrease in smartphone sales. This news was shared during an earnings call last week where CEO Cristiano Amon detailed proactive cost measures being taken to protect stockholder value amidst market volatility.
In the same vein, Qualcomm confirmed plans to downsize but dismissed rumors regarding the closure of its Shanghai-based R&D facility. The decision to downsize comes as part of the company's response to economic uncertainties and fluctuating demand.
Despite the impending layoffs, there are no plans for any facility closures. The company maintains that these measures are part of a broader strategy aimed at ensuring financial stability and preserving shareholder value in a volatile market environment.
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