In its upcoming quarterly results on May 3, the multinational chip manufacturer Qualcomm will announce company-wide job cuts affecting 5% of its workforce, according to sources with knowledge of the situation.
While all leading players were cutting jobs globally due to a decline in sales and the ongoing tech slowdown, Qualcomm was evaluating the situation and its advantages and has now made a decision, the source claimed.
Additionally, those with knowledge of the situation claimed that the majority of the cuts would affect the tech giant’s mobile division. About 20% of Qualcomm’s mobile division’s workforce will be let go, the source claims.
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“We’re undertaking additional budget cuts and optimizing operations while keeping an eye on the enormous growth and diversification opportunities that lie ahead, given the present macroeconomic and demand climate,” said the CEO of Qualcomm
“This is consistent with the pledge we made during our most recent earnings call to carefully manage operating expenses. In addition to the efforts we already took in the quarter, we anticipate cutting non-GAAP operating costs by around 5% compared to a run rate at the end of fiscal ’22,” they added.
Another source with knowledge of the situation stated that Qualcomm has been having problems as a result of a decline in smartphone sales.
In the quarter that concluded in December 2022, Qualcomm’s net income decreased 34% year over year (YoY). The company’s sales decreased by 12% from the previous year. This was ascribed to both the slowdown in the macroeconomy and the decline in demand for mobile devices.