You are now at: Home » News » Economy » Text

Qualcomm plan to lay off a large number of employees to cut $1 billion in costs

Enlarged font  Narrow font Release date:2018-05-02   Browse number:37
Note: Aimd its ongoing battle with Apple, the chip giant Qualcomm is about to cut jobs for cutting expenses, according to Bloo

Aimd its ongoing battle with Apple, the chip giant Qualcomm is about to cut jobs for cutting expenses, according to Bloomberg. In the report, Qualcomm is cutting its staffs as part of “cost reductions.”
The number of positions being eliminated is large enough that Qualcomm has to file a Worker Adjustment and Retraining Notification, which is required when companies let go of 50 or more employees within a 30-day period, with the state of California. And Qualcomm filed it on Thursday stating 1,500 employees in the state will be terminated on or about June 19, 2018.
Since the deterioration of relations with Apple, Qualcomm’s earnings have taken a hard hit. During Q4 of 2017, the company reported a 90 percent drop in profit, even pointing out that its numbers were plagued by the Apple legal case. It is said that Apple and its suppliers were refused to pay royalties to Qualcomm during proceedings. Qualcomm stated in its earnings press release last November that its numbers were  “negatively impacted as a result of actions taken by Apple and its contract manufactures.”
Furthermore, it is said that Apple is about to drop Qualcomm altogether and produce future iPhone models with only parts from Intel and MediaTek. If things go on like this, Qualcomm’s long-term finances would definitely be harmed.
The battle between Qualcomm and Apple began over a year ago following a complaint from the FTC, which alleged that Qualcomm was forcing Apple to use its baseband chips at higher royalties. Shortly thereafter, Apple got in on the action and filed its own $1 billion lawsuit against the chipmaker. Qualcomm originally said it had hoped business could continue as usual with Apple throughout the case, but it later ended up filing a countersuit against Apple. 
What’s more, Qualcomm requested an import ban on select iPhones in the United States that use Intel’s technology.

[ News Search ]  [ Add to Favourite ]  [ Publicity ]  [ Print ]  [ Violation Report ]  [ Close ]

Total: 0 [Show All]  Related Reviews