UPDATE: July 26, 2018 -- QUALCOMM KILLS NXP SEMICONDUCTOR DEAL
Qualcomm apparently has killed the NXP Semiconductors deal for $44 billion due to Chinese regulators missing Qualcomm's self-imposed deadline. While Qualcomm will have to pay NXP a break-up fee of $2 billion, it appears that Qualcomm is planning to spend approximately $30 billion in a stock buy-back that will deliver additional value to Qualcomm shareholders.
Original post ...
As a consequence of a promise to investors to reduce spending by $1 billion to compensate for reduced revenues, it appears that San Diego, California-based Qualcomm, the world's largest maker of phone processors and chipsets, will be laying off up to 1,231 workers.
Qualcomm’s highly public battle with Broadcom, as I detailed in my post, Battle of the Bits: Broadcom versus Qualcomm, resulted in the announcement of a cost reduction plan that is now taking effect.
In a statement to the public, Qualcomm’s spokesperson said ...
"As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce. A workforce reduction, such as this one, affects not only those employees who are part of the reduction, but their families, co-workers and the community. We recognize this and have offered affected employees supportive severance packages to reduce the impact of this transition on them. 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."
Employees are often the most replaceable and fungible elements of any cost reduction plan; even if to replace older, more costly employees with younger ones.
Are you asking yourself, Am I Next?