Qualcomm revealed its intention to reduce headcount at its Shanghai office only in the third week of September. Now, the technology company is reportedly preparing to lay off over a thousand employees from its global workforce of 51,000. This time, the cuts are being made at its California offices, specifically in San Diego and Santa Clara. The company is expected to offer substantial severance packages to the affected employees.
According to the firm’s annual financial filing, approximately 1,064 employees will be let go from the San Diego office by the second week of December 2023, while approximately 194 employees will be asked to leave the Santa Clara office. The facilities at both locations will remain operational.
Given the macroeconomic environment, the company had previously indicated the possibility of job cuts and reorganisation in its quarterly earnings report.
The company plans to invest in primary growth and investigate diversification opportunities. It hopes to finish the restructuring by the first half of fiscal year 2024.
Qualcomm’s semiconductor and mobile telecommunications ventures have offices in over a dozen Chinese cities. It has research and development facilities in both Beijing and Shanghai. Qualcomm mentioned ‘workforce reductions’ as part of broader restructuring efforts in an August stock exchange filing discussing its quarterly revenue. Shanghai job cuts were announced in September.