Revenue declines, Qualcomm cuts 1,200 employees

According to Neowin , the layoffs were revealed in a filing with the California employment development agency, representing 2.5% of Qualcomm's total workforce. The affected roles include engineering, legal, human resources... According to Qualcomm, the layoffs are part of cost-cutting measures to cope with declining revenue and weak demand.

About 2.5% of Qualcomm's workforce is about to lose its jobs

Qualcomm is feeling the pressure on its revenue as global smartphone sales slow. It also faces the risk of losing a major customer, with analyst Ming-Chi Kuo reporting that Huawei could switch from Qualcomm chips to domestic suppliers for orders starting next year.

In an earnings call last month, CFO Akash Palkhiwala warned the company would implement further cost cuts due to the ongoing economic uncertainty. He noted the company’s commitment to operating discipline, which means proactively cutting costs until industry fundamentals improve.

In August, Intel planned to lay off more than 300 employees at its California offices, while Micron also cut 10% of its workforce, or about 4,800 employees, and suspended bonuses through early 2023.

The news comes on the heels of Qualcomm's announcement of its new Snapdragon X-series chips for PCs. Earlier this week, the company said it would drop the 8cx branding for its future PC chips in favor of a new product, the Snapdragon X.

Last month, Qualcomm was said to be supplying 5G chips for Apple products to be introduced in 2024, 2025, and 2026. It was a surprise deal given that Apple is expected to start using its own 5G modem system in its 2024 iPhone lineup.

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