San Diego-based microchip giant Qualcomm (NASDAQ:QCOM) is preparing for a significant workforce downsizing, with plans to lay off approximately 1,258 employees across various departments in California. The company stated that the reductions will affect roles in engineering, legal, and human resources in San Diego and Santa Clara.
This move comes as Qualcomm navigates a challenging financial landscape. The company has recently secured notable partnerships, including a 5G chip supply agreement with Apple (NASDAQ:AAPL) extending to at least 2026, and serving as the chip provider for Meta (NASDAQ:META) Quest 3. Despite these alliances, the company has experienced declining revenues.
Qualcomm's CFO Akash Palkhiwala had previously hinted at implementing cost-saving measures to improve the company's financial situation. Palkhiwala emphasized that Qualcomm will continue to enact additional cost-cutting actions until there is a substantial recovery in their financial standing.
The layoffs are scheduled to take effect on December 13th, as disclosed in a filing with the California Employment Development Department. This sweeping workforce reduction follows a similar trend in the tech industry. Microsoft-owned LinkedIn also announced that it is cutting 668 roles from its Sunnyvale-based engineering, product, talent, and finance teams as part of a strategic restructuring.
Despite the current challenges, Qualcomm remains a prominent player in the Semiconductors & Semiconductor Equipment industry, as highlighted by InvestingPro Tips.
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