Qualcomm Trims Its Workforce By More Than 400, As Chipset Maker Intends To Cut Losses Due To Waning Smartphone Sales

wccftech.com:

Despite being more than halfway into 2023, technology companies do not appear to witness any positive economic activity, and that has eaten into their revenue stream. The latest entrant to announce layoffs was Qualcomm, though, unlike other giants who decided to trim their workforce in the thousands, the San Diego firm states that it will be cutting jobs by slightly more than 400.

After filing Worker Adjustment and Retraining Notification Act (WARN) paperwork in California, The San Diego Union Tribune reports that Qualcomm announced it would be laying off 415 employees from its San Diego headquarters. However, the company has also let go of 84 workers in the Bay Area as it attempts to consolidate its financial position after experiencing a slowdown in smartphone sales, particularly in China.

While the company has not commented on its latest actions, CEO Cristiano Amon stated the following during Qualcomm’s earnings call in May. Even after the layoffs, the firm remains San Diego’s largest, with 12,000 local employees.

“We are actively managing operating expenses and will continue to evaluate additional opportunities to drive greater operating efficiencies without losing sight of the automotive and Internet of Things growth opportunities ahead.”

In an effort to reduce layoffs and losses, Qualcomm has attempted to diversify beyond the smartphones, tablets, and modem business. One area is digging into the automotive sector, where the company is said to have a large backlog with car markers for various applications, ranging from infotainment systems and automotive driving.

However, with the smartphone market bringing the lion’s share of the revenue for Qualcomm, it had to make some tough decisions. The job cuts were mainly focused