Today, Qualcomm will start the process of laying off around 1,500 workers in California. According to Bloomberg, the move is part of Qualcomm’s promise to its investors that the company would be cutting down costs by about $1 billion.
This comes after Broadcom’s attempt of a hostile takeover of the company. Qualcomm has pledged that it will cut down costs to improve its earnings, though majority of company shareholders were more interested in Broadcom’s takeover offer. Broadcom’s attempt to takeover was shot down by President Trump after he intervened in the potential merger, blocking it in the interest of national security.
After the whole process ended, Qualcomm is now taking steps to improve its earnings and satisfy shareholders. Unfortunately for majority, this includes cutting jobs to bring more money back into the company.
A person familiar with the situation told Bloomberg that these layoffs represented majority of the cuts that the company would be making, though there may be more layoffs in other departments. Before proceeding to layoffs, the company did try to look at other options.
“We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” the company said in a statement to Bloomberg.