Qualcomm begins layoffs to support long-term growth: All the details
Global chipmaker Qualcomm has begun layoffs affecting both full-time and temporary employees as “workforce reductions are necessary to support long-term growth and success.”
According to reports, Qualcomm may cut 1,500 jobs in California alone.
The reports come as Qualcomm struggles to complete its purchase of NXP while meeting its goal of cutting costs by $1 billion, reports Fierce Wireless.
“As part of a cost-cutting plan announced in January, Qualcomm is reducing our full-time and temporary workforce. Workforce reductions like this affect not only the employees who are part of the reduction, but their families, co-workers and the community,” the chip giant said in a statement.
The company offered affected employees supportive severance packages to lessen the impact of the transition on them.
“We first evaluated reductions in personnel costs, but determined that workforce reductions are necessary to support long-term growth and success, which will ultimately benefit all of our stakeholders,” the company added.
Earlier this month, Qualcomm said it resubmitted its application to acquire NXP at the request of China’s Ministry of Commerce.
In connection with the replenishment, NXP and Qualcomm agreed, among other things, to extend the end date of their purchase agreement from April 25, 2018 to July 25, 2018.
China is the only country that has not signed on to Qualcomm’s NXP purchase.
Qualcomm had pulled out of a $44 billion deal to buy NXP Semiconductors after failing to get Chinese regulatory approval.
Meanwhile, South Korea’s Supreme Court this month ruled against a record 1 trillion won ($760.8 million) fine by the national antitrust regulator imposed on U.S. chipmaker Qualcomm in 2016 for unfair business practices.
The fine was imposed by the Fair Trade Commission (FTC), which found in December 2016 that the San Diego-based company and two of its subsidiaries violated South Korea’s antitrust laws by refusing to offer licenses to chipset makers and by demanding high fees for patents used by the patentees. smartphone manufacturers.
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