Qualcomm decides to lay off 1000 employees

Qualcomm headquarters in San Diego

Qualcomm headquarters in San Diego

US CHIPMAKER Qualcomm has begun laying off around 1,500 staffers in California in a bid meet a $1bn savings commitment made to investors. If Qualcomm is reportedly cutting jobs of 1,000 workers, it would affect about 3% of the global workforce of the company.

While the majority of the cuts will take place at the company's California headquarters, one of the sources said that some positions will be eliminated in other locations.

However, the company would not disclose how many employees will be affected.

Qualcomm, a leading provider of chips for mobile phones, did not specify the number of employees being let go but said the cuts included permanent and temporary workers.

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

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Back in January, Qualcomm promised shareholders that the company would make $1 billion in operational savings annually in order to improve earnings.

Despite Broadcom's failure to acquire Qualcomm, the chip maker is still accountable for its pledge to investors.

The job cuts locally are significant - almost matching the 1,315 workers laid off in San Diego during Qualcomm's last major restructuring in early 2015.

Back in March, Trump blocked Broadcom from pursuing a hostile takeover of USA rival Qualcomm, ruling the proposed combination would imperil national security. Subsequently, Apple sued Qualcomm for $1 billion, leading to a drawn out legal skirmish.

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