Qualcomm is Reportedly Cutting Jobs as Part of a $1 Billion Saving Effort

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Qualcomm is reportedly cutting jobs as part of a $1 billion saving effort, according to a report. Chipmaker Qualcomm Inc. began layoffs on Wednesday to help boost profit.

The report says the San Diego company’s new decision could affect as many as 1,000 jobs in the city. Besides, the company is also offering packages to the employees involved in the layoffs.

A Qualcomm spokeswoman declined to comment on how many numbers of positions would be cut but said that the company will alert workers about the job cutting. It will have to file a WARN notice or Worker Adjustment and Retraining Notification with the state. California requires companies give WARN notice of a layoff of more than 50 workers within 30 days.

Qualcomm recruited around 33,800 employees in both full and part-time positions, as of September 2017, according to company filings. If Qualcomm is reportedly cutting jobs of 1,000 workers, it would affect about 3% of the global workforce of the company.

The purpose of this $1 billion cost-reduction program is to reach the company’s profit-boosting plan introduced in January.

Qualcomm finance chief George Davis said in January that the profit plan would include eliminating nonstrategic programs, restructuring the patent-licensing business, getting past early investments in the 5G, and cutting sales and general expenses.

“As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce,” a Qualcomm spokesman said.  “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.”