Qualcomm Inc. has begun cutting jobs as part of the chipmaker’s promise to investors to reduce costs by $1 billion, according to people familiar with the process.
The number of positions being eliminated at the San Diego-based company is large enough that Qualcomm will have to file a so-called WARN notice, or Worker Adjustment and Retraining Notification, with the state of California, one of the people said. Companies are required to make such a filing when they let go of 50 or more employees within a 30-day period. Qualcomm has other major locations in the state and around the world.
A Qualcomm representative declined to comment.
The smartphone-chip maker pledged in January that it would slash $1 billion in expenses to improve earnings, part of its efforts to fight off a hostile takeover bid from rival Broadcom Inc. Shareholders were set to ignore that promise and support the acquisition offer, until the Trump administration disqualified the deal on the grounds that it would pose a national-security risk. Qualcomm’s management team now must live up to its vow and work to solve other problems that have hampered revenue and profit growth. Sales have fallen every year since 2015 and are projected to decline 3 percent in fiscal 2018.
This isn’t the first time Qualcomm has cut jobs. In 2015, after pressure from an activist investor, the chip giant announced a restructuring that resulted in thousands of layoffs. The company has about 34,000 employees.