Because of the market slump, Qualcomm is laying off more than 1,200 people
Since the COVID-19 pandemic, global business has suffered a lot. Sometimes it was impacted by sluggish market conditions, and sometimes there was less demand and supply. In between these, several companies laid off their employees in an effort to manage their expenses. As of now, another company is about to undergo massive layoffs in order to balance its low-income revenues.
According to some recent pieces of information, Qualcomm is laying off its workforce. This information has been unveiled by the California Employment Development Department. Notably, the workforce will be removed from two offices. It will affect a total of 1,258 employees.
Currently, the company has 51,000 employees. From its total workforce, approximately 2.5% of employees will be laid off. Around 1,064 jobs will be cut in San Diego, and 194 people will be laid off from the Santa Clara offices. The prime reason behind job cuts is reduced business. This comes after low revenue was recorded in the company’s third fiscal quarter.
The employees will be laid off by December 13. According to the company, it will be followed by further restructuring. All these actions will be taken by the fourth and last quarter of the current fiscal year. Qualcomm is experiencing declining revenues because of “a persistent ambiguity in the macroeconomic and market environment”.
It was revealed by the analyst Ming-Chi Kuo that Qualcomm could lose a major client, i.e., Huawei. During this year, the company ordered around 40 million SoCs from Qualcomm. However, it is now switching to local partners from next year onward.
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