Qualcomm, one of the largest players in the mobile chip market, is parting ways with a total of 1258 employees in two offices in California. According to the company’s application to the California Department of Business Development, it will lay off 1,064 employees in San Diego, where its headquarters are located, and 194 employees in its Santa Clara office. This figure corresponds to 2.5% of the workforce of the company, which has 51 thousand employees.
The company reportedly made such a decision due to falling revenues following the stagnation in the chip market in the third quarter of this year. According to Qualcomm’s application, layoffs will be made until December 13 and restructuring will be carried out.
Huawei reduces orders
Qualcomm faces the risk of reduced revenues due to “ongoing uncertainty in the macroeconomic and demand environment.” Last month, analyst Ming-Chi Kuo said that Qualcomm may reduce its chip purchases from Qualcomm as Huawei turns to its own chips and local partners. The Chinese manufacturer has received over 40 million SoCs from Qualcomm so far in 2023. It is predicted that this figure will decrease significantly next year.
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