“Qualcomm Inc. has begun cutting about 1,500 jobs in California as part of a broader workforce reduction aimed at meeting a commitment to investors to pare costs by $1 billion, according to people familiar with the process,” Ian King and Mark Gurman report for Bloomberg.
“The layoffs in California represent the bulk of the cuts, though some positions will be eliminated in other locations, one person said. Globally, San Diego-based Qualcomm employs about 34,000 people,” King and Gurman report. “‘We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,’ Qualcomm said in the statement. The company said it will offer severance payments to those affected.”
“The smartphone-chip maker pledged in January that it would slash $1 billion in expenses to improve earnings, part of its efforts to fight off a hostile takeover bid from rival Broadcom Inc. Shareholders were set to ignore that promise and support the acquisition offer, until the Trump administration disqualified the deal on the grounds that it would pose a national-security risk,” King and Gurman report. “Qualcomm’s management team now must live up to its vow and work to solve other problems that have hampered revenue and profit growth.”
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MacDailyNews Take: The jig is up. It’s time to earn your money, Qualcomm. For a change.
Qualcomm’s licensing scam — charging a percentage of the total cost of all components in the phone, even non-Qualcomm components — is unreasonable, illogical, and irrational. Qualcomm’s FRAND abuse must stop.
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