Qualcomm begins layoffs to lower costs by $1 billion

Qualcomm begins layoffs to lower costs by $1 billion

Qualcomm Inc. announced Wednesday they would be cutting jobs as part of a promise to cut annual costs by $1 billion. It has been reported that the company is cutting jobs for both its temporary and full time employees, after evaluating the option of non-headcount expense reduction. Most of these layoffs will take place in California, but Bloomberg reports that there will be some losses in other locations.

Employees who have lost their job will be given severance packages, which would help help sustaining in the jobless period.

As reported by Reuters, a spokesperson for the USA chipmaker said on Wednesday that "Qualcomm is conducting a reduction of our full-time and temporary workforce".

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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. Qualcomm has pledged that it will cut down costs to improve its earnings, though majority of company shareholders were more interested in Broadcom's takeover offer.

The chipmaker had said in January that it is aiming to save almost $1 billion in costs when it risked a hostile takeover from Broadcom. Broadcom's attempt to takeover was shot down by President Trump after he intervened in the potential merger, blocking it in the interest of national security. The losses were mainly due to a $6 billion charge caused by U.S. tax reform, and a $1.2 billion charge imposed by the European Commission.

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