Qualcomm Layoffs 415 jobs at San Diego headquarters

Qualcomm Layoffs 415 jobs at its San Diego headquarters last month as the mobile chip firm seeks to reduce expenses.

Qualcomm Layoffs 415 jobs at San Diego headquarters

Qualcomm cut 415 jobs at its San Diego headquarters last month as the mobile chip firm seeks to reduce expenses amid a lingering slowdown in smartphone sales.

The San Diego-based wireless technology provider has filed Worker Adjustment and Retraining Notification Act (WARN) paperwork with California state and local employment officials, which will take effect in mid-July.

In addition to reducing its San Diego headcount, Qualcomm laid off 84 Bay Area workers.

Qualcomm designs semiconductors and provides mobile technologies to smartphone brands — as well as automakers and Internet of Things companies. On the smartphone front, most of its business comes from Android devices—though it supplies the 5G cellular modem chips used in iPhones.

Soft smartphone sales, especially in China, have influenced the company's growth this year.

This latest round of workforce reductions comes on top of two smaller layoffs in December and March, which removed a combined 232 workers from its payrolls in San Diego.

However, Qualcomm remains San Diego's largest technology company with nearly 12,000 local employees.

The company declined to comment. But on its latest earnings conference call in May, Chief Executive Cristiano Amon said the market was difficult to predict.

"We are actively managing operating costs and will continue to evaluate additional opportunities to drive greater operating efficiencies without losing sight of the automotive and Internet of Things growth opportunities ahead," he said.

Qualcomm is working to expand its business beyond smartphones. It has a large backlog with car manufacturers for in-vehicle connectivity, digital dashboard/infotainment systems and autonomous driving.

With the Internet of Things, Qualcomm supplies technologies for big rigs, drones, retail and warehouse scanners, robotics and in-cabin cameras for other industries.

But slower smartphones are a big part of the company's revenue. Chief Financial Officer Akash Palkhivala said during a conference call, “We are committed to a 5 percent reduction in non-GAAP operating expenses relative to our fiscal ’22 exit rate. "This includes further cost reductions in handsets to fund diversification investments."

According to Warn's notice, the job cuts are concentrated in engineering, with about 300 positions that have "engineer" in the job title eliminated.

Layoffs at San Diego tech companies, both large and small, have surged in the past 12 months.

TuSimple, a startup developing self-driving technology for semi-trucks, has cut nearly 300 local jobs. General Atomics Aeronautical Systems, which makes military drones, has cut 160 positions. Satellite operator Viasat laid off 107 workers. Amazon and Google also have locations in San Diego satellite locations.

- San diego Union

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