Qualcomm has begun job losses in California with the goal of releasing some 1,500 people to meet a $ 1 billion savings requirement for investors, Bloomberg reports. Job cuts are concentrated in California, but layoffs will also occur elsewhere. The company currently employs approximately 33,800 people worldwide.
"We first evaluated the cost reductions for staffless staff, but concluded that downsizing is necessary to drive long-term growth and success." said in a statement to Bloomberg. In January, Qualcomm promised to improve revenue by reducing its costs by $ 1
Qualcomm will request a worker correction and retention Over the next few days, evidence will be released on the state of California that is likely to provide more insight into the layoffs. The alerts are mandatory for companies that undertake collective redundancies of 50 or more employees within 30 days. In addition, the company must inform the affected employees 60 days in advance that they will be fired. Qualcomm will offer severance payments to those affected by the redundancies.
Qualcomm cut thousands of jobs in 2015 and has been struggling with declining sales in recent years. In January, Qualcomm was fined $ 1.2 billion by the EU for violating antitrust laws in a series of deals with Apple. Qualcomm was also the subject of a turbulent takeover bid by Broadcom for several months, but that was dropped after US President Donald Trump blocked the deal in March for national security reasons.