As per documents filed with the California Employment Development Department, approximately 1,258 roles based in California will be affected. These layoffs will be impacting a diverse range of roles, from engineers to human resources, with the cuts scheduled for December 13th.
While Qualcomm remains a significant player in the chip market, having recently secured a deal with Apple to supply 5G chips until 2026 and being the chip supplier for the newly launched Meta Quest 3, the company is evidently grappling with financial challenges.
In an August earnings call, Chief Financial Officer Akash Palkhiwala highlighted the company’s commitment to operating discipline, indicating proactive measures to trim costs amidst declining revenue streams. “Given our commitment to operating discipline, we will proactively implement additional cost actions,” Palkhiwala remarked. He also indicated that Qualcomm’s management doesn’t foresee an immediate financial recovery, suggesting more challenging times ahead for the chipmaking giant.
The news of the layoffs, especially following significant partnership announcements, underscores the broader challenges faced by the tech sector amidst global supply chain disruptions and market fluctuations. It remains to be seen how these changes will impact Qualcomm’s strategic positioning in the ever-evolving tech landscape.
For employees affected by the layoff, it is hoped that the burgeoning tech market in California and beyond will provide new opportunities.