After the COVID-19 pandemic, the world is facing economic hurdles. Since the beginning of this year, several companies have laid off employees. As per some recent pieces of information, Qualcomm is undergoing a recession as it is cutting jobs. Such a decision is a result of slow smartphone sales.
As per the information, the company has laid off staff from two offices. Reportedly, the company laid off 415 positions at its San Diego headquarters and another 84 employees were laid off at the Bay Area office. the source of this information is the paperwork of the Worker Adjustment and Retraining Notification Act (WARN). Among the various division of the company, major layoffs were observed in the engineering department i.e., a total of 300 positions were eliminated.
The reason behind the job cuts
The sales of smartphones and modems in the US have stayed steady. On the other hand, in China, Qualcomm’s growth this year has been significantly impacted by lackluster smartphone sales. Cristiano Amon, the CEO of Qualcomm, acknowledged the difficulties during the company’s most recent earnings conference call in May. He stated that “We are keenly administering operating expenses and will continue to estimate further prospects to drive greater operating efficacies without losing sight of the automotive and Internet of Things growth opportunities at the forefront.”
One thing to notice here is that this is not the fresh round of layoffs. Previously, the company laid off staff in December and in March. It adds up to a total of 232 employees being eliminated from the San Diego office.
Exploring the new areas
The economic hurdles have produced low revenue for Qualcomm. Besides this, the company is actively working to expand its business. It is focusing on the automotive industry. in this industry, the company is targeting the areas like digital dashboard/infotainment systems, in-vehicle connectivity, and autonomous driving technologies. The business is also stepping up its attempts to provide solutions for a variety of industries, including robotics, drones, retail and warehouse scanners, and in-cabin cameras for vehicles.
Research Snipers is currently covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More. Research Snipers has decade of experience in breaking technology news, covering latest trends in tech news, and recent developments.