Last Updated on October 14, 2023 by Robert C. Hoopes
Semiconductor manufacturer, Qualcomm, has announced plans to cut approximately 1,258 jobs in two California offices, according to recent filings with the California Employment Development Department. This reduction in workforce represents around 2.5% of Qualcomm’s total employees, which stood at around 51,000 as of September 2022.
The majority of job cuts will impact Qualcomm’s San Diego office, with approximately 1,064 employees affected. The Santa Clara office will also see around 194 job cuts. However, the company has reassured that no facility closures are expected as a result of these reductions.
Qualcomm has stated that these job cuts are part of their broader workforce reduction plans and related restructuring charges. This was mentioned in their last quarterly earnings report. The company attributes the decision to ongoing uncertainty in the macroeconomic and demand environment.
Additionally, Qualcomm anticipates further restructuring actions to be implemented in the future as it seeks to invest in key growth and diversification opportunities. These additional actions are expected to result in significant restructuring charges, primarily in the fourth quarter of fiscal 2023.
Despite the news of the job cuts, Qualcomm’s stock remained relatively stable on the day. This demonstrates that investors have confidence in the company’s plans for restructuring and future growth.
Qualcomm aims to complete the additional workforce reductions and restructuring actions by the first half of fiscal 2024. The company remains committed to adapting its workforce in response to evolving market conditions, ensuring its long-term sustainability and competitiveness in the industry.
As the semiconductor industry continues to face challenges and uncertainties, Qualcomm’s strategic decisions reflect its dedication to maintaining a strong position in the market and seizing new opportunities for growth.