Qualcomm Prepares for Substantial Workforce Reduction, Scheduled for December 2023. The company’s official documents submitted to the California Employment Development Department indicate that approximately 1,064 employees based in San Diego and 194 employees in Santa Clara will be impacted by the layoffs, representing approximately 2.5 percent of their overall workforce
Qualcomm is poised to implement significant job reductions, slated for December of this year. The company, in its recent filings with the California Employment Development Department, has affirmed that approximately 1,064 employees in San Diego and 194 employees in Santa Clara will be subject to these workforce adjustments, accounting for roughly 2.5 percent of their total employee base.
An article from CNBC disclosed that Qualcomm will initiate the layoffs on December 13 in both locations. Importantly, Qualcomm has assured that there will be no facility closures at these sites, seeking to provide reassurance to the local communities.
In response to inquiries regarding this decision, Qualcomm referenced its most recent quarterly earnings report, where it had indicated intentions for workforce reductions and associated restructuring charges. The company expounded, stating, “Given the ongoing uncertainty in the macroeconomic and demand environment, we anticipate taking additional restructuring measures to facilitate continued investments in pivotal growth and diversification opportunities.”
“While we are in the process of shaping our plans, our current expectations are that these measures will predominantly encompass workforce reductions. In connection with any such actions, we anticipate incurring substantial additional restructuring charges, a significant portion of which we foresee incurring during the fourth quarter of fiscal 2023. We currently project that these supplementary measures will be substantially concluded in the first half of fiscal 2024,” the company further added.
Notably, despite this substantial announcement, Qualcomm’s stock prices remained relatively stable throughout the day. The revelation of job cuts by a prominent tech entity such as Qualcomm underscores concerns about the broader economic landscape and the challenges facing the semiconductor industry. It also underscores the persistent repercussions of the COVID-19 pandemic on the job market, as many companies reevaluate their workforce and financial strategies to adapt to evolving circumstances. Qualcomm’s decision reflects its commitment to maintaining competitiveness and adaptability in a swiftly evolving industry environment while implementing necessary workforce modifications.
As these layoffs unfold in December, the affected employees and the tech sector at large will closely monitor Qualcomm’s future actions and the potential ramifications for its operations and product development in the upcoming months. Currently, it remains uncertain whether the company will offer compensation to the employees impacted by these changes. Over the past year, most tech firms that have carried out significant workforce reductions have provided severance packages to affected individuals.
