The worldwide known, Chipmaker company Qualcomm has announced to lay off their 1500 employees in California and undisclosed number across the world. This lay off is carried out as per the cost reduction plan of $1 billion which was announced early this year in January.
The spokesperson of the company said that the layoff is required to achieve the long-term success and growth, which in turn would benefit the shareholders. He further stated that the employees who are to be sacked are both part-time and full-time employees. The exact number of employees are not disclosed yet by the company. But As per the documents filed, 1231 employees are sacked in San Diego and 289 employees are sacked in San Jose.
Qualcomm did not declare as to how many employees are to be laid off outside California and how many employees they currently have. Findings as per September 2017 data from the website discloses, there were 33,800 employees in the company. After the layoff in California and across the world, how many employees would still be there within the company is not known.
Qualcomm has been facing quite a few challenges in recent times. The Trade relations between Beijing and Washington has surged up to be a big challenge for the company. The Chinese govt has now held up the $44 billion proposed takeover of NXP Semiconductors due to antitrust problems. This is delaying the deal for quite a time now and the deal is said to be postponed to 25th July 2018.
Also, ZTE, a very major customer(Chinese Tech giant) of Qualcomm, which buys the chips from their US firm for their Smartphone, has been banned by the United States Govt. This comes as a major setback to the company as they may lose a big Chinese giant over not so healthy nation relations.
Qualcomm’s chips have been used worldwide by many Smartphone makers and they recently placed a bid for acquisition of Broadcom for $117 billion. But Broadcom withdrew the takeover just the previous month after Donald Trump, President of United States blocked the deal citing major National Security Reasons.
The administration stated that the takeover of Broadcom might become a hindrance in the Qualcomm’s R&D of 5G. This might in turn delay the 5G deployment in the US and can ultimately be a gain of Chinese rivals.