Qualcomm announced it’s laying off employees today. The cuts are meant to “trim the fat” a bit and streamline the chipmaker’s workforce.
CEO Paul Jacobs told Morning Star about the company’s cost cutting measures today:
“In fiscal 2014 we are facing some mix and demand factors which we currently expect will moderate our QCT growth. In light of this we are taking near-term actions company-wide to prioritize investments, stay focused on growth but also control expenses in order to deliver operating profit growth in excess of revenue growth.”
So far the downsizing seem to be focused on management, with several cuts and demotions at the vice-president level. However the company has signaled more cuts will be coming down the line, affecting several departments. Qualcomm’s weak 4th quarter for fiscal year 2013 is thought to be the cause.
The company is facing increasing competition from low-cost chipmakers. Also, phone and tablet manufacturers like Samsung and Apple are increasingly developing the chips in their devices in-house.
Qualcomm is still turning a profit, however, and the 31,000 employee company is still a major player on the mobile technology scene.