LAYOFFS: NO LOVE AT QUALCOMM (UPDATED)

Am I Next? Mass Layoffs at Qualcomm

UPDATE: DECEMBER 9, 2018 - LAYOFFS CONTINUE

According to WARN (Worker Adjustment and Retraining Notification) notices filed in California and North Carolina, the company plans to eliminate 269 jobs, 125 at its San Diego headquarters and 144 in its Raleigh, North Carolina data center. Many of the layoffs are linked to the Qualcomm Life division, the wireless connectivity initiative targeted at the medical industry.

An estimated 1,500 workers have been laid off to-date in 2018.

A company spokesperson noted, “While this activity impacts a very small percentage of our workforce, we know a workforce reduction of any size affects not only those employees who are part of the reduction, but their families, co-workers and the community.”

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?