If Qualcomm is reportedly cutting jobs of 1,000 workers, it would affect about 3% of the global workforce of the company. Besides, the company is also offering packages to the employees involved in the layoffs.
KitGuru Says: Qualcomm has been having a rough time lately, with various anti-trust lawsuits in play, Hopefully those affected by these job cuts end up landing on their feet.
The exact scope of the layoffs should become more clear in coming days as the chipmaker files the Worker Adjustment and Retraining Notification notices it's obligated to issue under California law.
As part of its effort to rebuff a $117 billion hostile takeover by Broadcom, its Singapore-based comptitor, Qualcomm promised shareholders that it would cut its spending by $1 billion to make up for declining sales.More news: P&G to buy German Merck's Consumer Health Unit
As reported by Reuters, a spokesperson for the U.S. chipmaker said on Wednesday that "Qualcomm is conducting a reduction of our full-time and temporary workforce".
The company said it initially evaluated cost cuts that would have avoided layoffs, "but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all of our stakeholders". In an emailed statement, the tech company had confirmed that both full-time and part-time workers are going to be laid off in the latest move.
The bid, however, was cancelled by the Trump administration on national security grounds.
Despite Broadcom's failure to acquire Qualcomm, the chip maker is still accountable for its pledge to investors.