Qualcomm has revealed that it will cut over 1,200 jobs, or those of about 2.5% of its current employees, later in 2023. All of the affected staff members are located in the same region, although they will be obliged to leave their posts in two different facilities within it. Nevertheless, the OEM has announced its intention to keep investing in different business areas at around the same time.
Qualcomm is one of the biggest companies in the chip-creation space, with leading roles in providing SoCs for cars, drones and even bikes now as well as PCs, headsets and mobile devices. Nevertheless, it is not insensible to the prevailing “macroeconomic” headwinds, and will bend to them in downsizing some of its centers.
The OEM has revealed that it will indeed let a total of 1,258 people go at the end of 2023. The spate of job cuts affects an estimated 2.5% of its ~51,000 personnel; then again, they are concentrated in the same jurisdiction: California.
1,064 of these layoff are slated to take place in Qualcomm’s San Diego facility, with another 194 affecting its Santa Clara location.
Declining demand is cited as a factor in these decisions, and has indicated that its remaining workers may have to brace for “significant additional restructuring charges, a substantial portion of which we expect to incur in the fourth quarter of fiscal 2023”.
Nevertheless, the company will keep on spending money in an effort to remain attractive to more and more potential customers in emerging or niche use-cases in the near future.