Qualcomm plans to layoff over 1,200 employees in California: Report
Bloomberg reported. In the notifications, the company informed that the job reductions will begin around mid-December. The San Diego-based company is required to make the filings under California rules.
Those obligations on announcements of job cuts don’t apply to the company’s other locations. Chief Financial Officer Akash Palkhiwala told analysts in August that Qualcomm would “proactively implement additional cost actions", as per Bloomberg reports. “We had previously communicated we would evaluate additional cost actions as the environment continues to evolve," he said on a conference call.
“Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery." The company, which will report earnings next month, is on course to see revenue shrink by about 19% in the current fiscal year. While Chief Executive Officer Cristiano Amon is trying to drive Qualcomm’s products into new areas, the company still gets the bulk of its sales from the phone market. Demand for the devices, particularly in China, hasn’t rebounded as quickly as some had projected.
Qualcomm shares were little changed at $111.10 at 3:05 p.m. in New York. The stock had gained 1% this year through Wednesday’s close, lagging behind a rally of almost 40% by the Philadelphia Stock Exchange Semiconductor Index.
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