Qualcomm will cut 1,258 jobs at two California offices, California Department of Employment Development filings reveal. The chip company disclosed that 1,064 jobs will be cut in San Diego, where it is headquartered, and another 194 at offices in Santa Clara.
Qualcomm currently has more than 51,000 employees, so it is laying off 2.5% of its workforce. The main reason for the job cuts is the company’s declining revenue after sluggish chip business in its third fiscal quarter.
The jobs will be vacated by Dec. 13 and further restructuring changes will occur, Qualcomm disclosed in the filing. These activities will be spent in the fourth quarter of fiscal year 2023, which is the beginning of calendar 2024.
Qualcomm faces declining earnings amid “a continued uncertainty in the macroeconomic and demand environment.”
Last month, analyst Ming-Chi Kuo revealed that Qualcomm could lose a major client to Huawei; The Chinese manufacturer bought more than 40 million SoCs in 2023 but is shifting to local partners in 2024 and beyond.
