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US-based Qualcomm Layoffs its Shanghai staff due to China’s declining economy

US-based Qualcomm Layoffs its Shanghai staff due to China's declining economy

Qualcomm plans to reduce staff at its Shanghai office as ongoing technological tensions between the US and China worsen. Although the precise number of workers affected has not been disclosed, the department responsible for wireless business research and development will be most significantly impacted by the layoffs.

For its semiconductor and mobile telecommunications ventures, Qualcomm keeps offices in more than a dozen Chinese cities. In a stock exchange filing from August that covered its quarterly revenue, Qualcomm mentioned that it expected to undergo “workforce reductions” as part of a larger restructuring. Given the ongoing macroeconomic and demand uncertainties, the company stated that it aims to facilitate ongoing investments in crucial growth and diversification initiatives.

All affected employees will receive enticing severance packages, according to the company.

Qualcomm Both Beijing and Shanghai are reportedly home to China’s research and development facilities. Additionally, supply chain firms like Qualcomm have been severely impacted in recent years by the smartphone market’s sluggish growth and competitive pressures. Cost reduction and efficiency enhancement are now common strategies for multinational tech companies.

The company also continually faces competition from rivals in the mobile phone industry. Sales of smartphones fell by 4% in China in the second quarter of 2023 compared to the same period the previous year. The second-quarter sales figures were the lowest since 2014 as a result of economic difficulties that harmed consumer confidence.

Other US chip companies have also been reducing their staff numbers in China. For instance, in response to a downturn in the industrial sector, California-based Marvell Technology announced in March that its research and development team in mainland China would be completely shut down. This action was taken about five months after the company started making job cuts in an effort to streamline operations there.