Qualcomm to cut more than 1,500 jobs
U.S. semiconductor and telecom giant Qualcomm is cutting more than 1,500 jobs in California and an additional, undisclosed, amount from locations around the globe.
“As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce,” the company said in a statement. “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.”
The company, which retained more than 33,000 employees as of late 2017, said the job cuts will help slash expenses by about $1 billion.
The San Diego-based company released a detailed plan to create near-term value and win shareholder support in January, at a time when it was the target of a hostile takeover bid from Singapore-based rival Broadcom. The Trump administration has since blocked the proposed acquisition over national security concerns, leading Broadcom to abandon its efforts.
Meanwhile, Qualcomm’s attempts to acquire NXP Semiconductors is running into regulatory hurdles in China, due to antitrust concerns. The company pushed back the deadline for completing the deal on Thursday to July 25, from April 25.
Shares of the beleaguered telecom giant, which were trading slightly lower as of midday on Friday, are down more than 18% so far this year.