Qualcomm will cut 1,258 jobs at two offices in California, documents filed with the California Employment Development Department reveal. The chip company revealed that 1,064 jobs will be eliminated in San Diego, where its headquarters is located, and another 194 in its Santa Clara offices.
Qualcomm currently has over 51,000 employees, so it will let go of 2.5% of its workforce. The main reason for the job cuts is declining revenue after the chip business stagnated in the company’s fiscal third quarter.
Cristiano Amon, President of Qualcomm
The jobs will be released by December 13 and further restructuring changes will be made, Qualcomm revealed in the statement. These actions will be taken in the fourth quarter of fiscal 2023, which is the start of calendar 2024.
Qualcomm is facing declining revenues amid “continued uncertainty in the macroeconomic and demand environment.”
Last month, analyst Ming-Chi Kuo revealed that Qualcomm could lose a major customer to Huawei; the Chinese manufacturer purchased over 40 million SoCs in 2023, but is shifting to local partners for 2024 and beyond.
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