Qualcomm will announce a global workforce reduction of 5% in its quarterly earnings report on May 3, according to some media. The decision is attributed to declining global smartphone sales and a sluggish tech industry.
According to a source, while other major players in the industry were reducing their workforce worldwide due to a drop in sales and the continuing slowdown of the tech sector, Qualcomm was assessing the situation and considering its options. The company has now made a decision to implement job cuts. Furthermore, the source revealed that the majority of the cuts will be in Qualcomm's mobile division, which will see about 20% of its workforce being let go.
Qualcomm is set to announce a global workforce reduction of 5% during its quarterly earnings report on May 3, according to a report by Business Today. The decision is a response to declining global smartphone sales and the current state of the technology industry.
A source familiar with the matter added that the majority of the cuts will impact Qualcomm's mobile division, with approximately 20% of the division's workforce expected to be affected.
In a statement, the CEO of Qualcomm stated that the company is "undertaking additional budget cuts and optimizing operations while keeping an eye on the enormous growth and diversification opportunities that lie ahead, given the present macroeconomic and demand climate." The CEO also said that this is consistent with the company's pledge during its recent earnings call to carefully manage operating expenses.
Furthermore, a decline in smartphone sales has been causing problems for Qualcomm. In the last quarter ending in December 2022, the company's net income decreased by 34% YoY, while sales dropped by 12% from the previous year. This was attributed to both the macroeconomic slowdown and the decline in demand for mobile devices.