San Diego, CA – Chipmaker Qualcomm announced plans to cut over 1,200 jobs from California due to shrinking revenues brought on by weak smartphone demand.
Qualcomm recently submitted documents with California’s Employment Development Department that revealed it plans to eliminate 1,064 positions at its San Diego headquarters and 194 in Santa Clara offices – representing 2.5% of their global workforce of over 51,000 workers.
Qualcomm announced job cuts shortly after posting a 31% decline in chip revenues during their fiscal third quarter, due to declining smartphone upgrades and economic headwinds diminishing demand for their processor chips.
Qualcomm is undertaking cost reductions to align costs with near-term revenue projections and thus prepare it to weather market downturn and capitalize on recovery as demand improves. The reductions may help Qualcomm remain financially sustainable during market fluctuations as well as prepare it to expand when demand picks back up again.
Qualcomm issued a statement calling these cuts an essential measure to maintain financial health and remain focused on developing breakthrough technologies while serving partners and customers.
As companies prepare for potential recession, tech sector layoffs have increased substantially in recent months. Qualcomm joins Amazon, Microsoft and Meta in eliminating jobs as tech industry pressure mounts.
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