Qualcomm announces major layoffs, hundreds of employees laid off
California chipmaker Qualcomm has announced it will lay off more than 200 employees in San Diego as part of its ongoing strategy to optimize operating costs.
The layoffs, which affect 226 workers, will take effect on Nov. 12 and were noted in a California Workers Adjustment and Retraining Notification (WARN), a mandatory notification for businesses operating in the state.
While the company claims it has around 10,000 local employees and 50,000 globally, the widespread nature of Qualcomm’s layoffs is concerning.
Qualcomm to lay off hundreds of employees
The layoffs are expected to affect employees at 16 different locations in the San Diego area, including the company’s headquarters.
In a statement, a company spokesperson explained that the layoffs fit with the company’s broader goal of diversifying its operations: “As part of the normal course of business, we are prioritizing and aligning our investments, resources and talent to ensure we are optimally positioned to capitalize on the unprecedented diversification opportunities ahead of us.”
The latest round of layoffs comes less than a year after the company laid off 1,250 employees, more than 1,000 of them in the San Diego area. Alarmingly, the latest cuts are believed to affect positions in operations, finance and senior engineering, including five VPs of engineering and one VP of technology.
Despite the workforce cuts, Qualcomm reported a strong financial quarter for the three months ended June 23, with revenue of $9.4 billion, up 11% year over year. Quarterly profits also rose, up a healthy 18%.
At the time, CEO Cristiano Amon praised Qualcomm’s performance: “Our third quarter results reflect strong execution of our growth and diversification strategy, with quarterly QCT revenue and EBT margins at the high end of our guidance.”
TechRadar Pro has reached out to Qualcomm for comment on the layoffs, but has not yet received a response.
