Qualcomm has reportedly begun to lay off approximately 1,500 employees at the company's San Diego, California-based headquarters as part of a broader move to cut costs by $1 billion amid shareholder pressure, recent reports suggest, though it remains unclear what positions are being vacated. It is also worth pointing out that the figure is just an estimate based on statements from unnamed sources, though Qualcomm is expected to file a Worker Adjustment and Retraining Notification (WARN) with California. A WARN notice is one of the requirements for companies that dismiss 50 or more workers and it is expected to provide a clear number of Qualcomm employees set for layoff.
It remains to be seen how much of Qualcomm's overall costs the job cuts are likely to bring. It is also understood that the layoffs will not just happen in California, but also in other locations where Qualcomm operates. The American semiconductor company confirmed the massive layoff, which will cover both full-time and contractual employees who will receive separation payments, according to Bloomberg, which cited a source familiar with the move. Qualcomm reportedly said it aims to sustain long-term growth and success, and the layoff is one of the steps it deems necessary to accomplish that. The massive layoff is not unprecedented, however, as Qualcomm dispatched about 600 employees worldwide, with 300 of those job cuts having occurred in California and the other 300 across its global facilities. The decision was made after the company evaluated its businesses to determine where efficiencies can be achieved.
It is understood that the chipmaker's latest move is in line with the cost-cutting measures the company introduced last January. At that time, Qualcomm proposed a number of ways to reduce expenses at the company in an attempt to convince its investors that it can be in a better position on its own financially than being acquired by another company. More to the point, Qualcomm has been trying to fend off the hostile takeover bid of Broadcom by promising to hit adjusted earnings per share of between $6.75 and $7.50 for the fiscal year 2019 with a promise of continued growth and significant cost reductions meant to help sustain efficient operations at the company.