QUALCOMM (QCOM) Initiates Layoffs To Slash Annual Costs
Zacks Investment Research | Apr 18, 2018 11:10PM ET
Per Reuters, chipmaker QUALCOMM Incorporated (NASDAQ:QCOM) has started downsizing to improve its profitability. As part of its long-due promise to investors, management has initiated the layoff to trim annual costs by $1 billion or £704.6 million.
The company reported that it has begun to reduce its full-time and temporary workforce, keeping the exact number of job cuts undisclosed. It has offered severance packages to the affected employees.
After evaluation of non-headcount expense reductions, management concluded that a workforce reduction is needed to support the company’s long-term growth.
Furthermore, the size of the job cuts is large enough for Qualcomm to file a Worker Adjustment and Retraining Notification with the state of California.
As of Sep 24, Qualcomm employed about 33,800 full-time, part-time and temporary employees.
In January, the company said that it would implement a series of targeted cost reduction measure across its businesses in order to save $1 billion in annual costs, which was in alignment with its attempt to win over investors’ support against a hostile bid from rival, Broadcom Inc. (NASDAQ:AVGO) . The bid, however, was cancelled by the Trump administration on national security grounds.
Over the past three months, the stock has underperformed the Zacks Investment Research
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