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Report: Qualcomm starts laying off workers to cut $1 billion in expenses

Report: Qualcomm starts laying off workers to cut $1 billion in expenses
After the president last month blocked chip maker Qualcomm from being purchased by Broadcom for $117 billion, the company's former CEO, Paul Jacobs, reportedly starting drawing up plans to take the company private. But this potential transaction, if it ever happens, is still two months away by all accounts. And because there is no deal on the table at present, Qualcomm has started to fulfill a promise made in January to cut costs by $1 billion.

Today, the company that produces the Snapdragon line of mobile chips announced that it will be laying off an unknown number of employees. While Qualcomm didn't report the number of pink slips it handed out, the number was large enough for Qualcomm to file a Worker Adjustment and Retraining Notification (WARN) with the state of California. That means 50 or more employees are affected.

When Qualcomm announced that it would cut costs in the beginning of the year, it did so in an attempt to win over Qualcomm stockholders, who at the time were being courted by Broadcom. The latter offered a package of $60 cash and $10 in Broadcom stock for each Qualcomm share. The bid was raised in February to $82 a share ($60 cash, $22 in Broadcom shares) before Broadcom dropped it by 4% to $79 a share. That was done after Qualcomm raised its offer for auto-chip maker NXP Technologies from $110 a share to $127.50.

Speaking of the NXP deal, the $44 billion acquisition is in limbo at the moment. All countries but one, China, have given regulatory approval to the transaction. But because of the current U.S.-China trade wars, which were arguably instigated by the U.S., Chinese regulators might not be so quick to give the deal its blessings. Qualcomm hopes to broaden its product line with the acquisition, lessening its dependence on sales of chips to manufacturers of mobile devices. The company has until April 25th to get Chinese authorities to approve the purchase of NXP.

source: Reuters

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12 Comments

TechNeck

Posts: 599; Member since: Aug 29, 2014

People had to elect the pettiest person to put in the office. I'm fr done with this country.

rouyal

Posts: 1468; Member since: Jan 05, 2018

This is all President Drumphs fault! He should have ran Qualcomm better than this. Why, I remember when Barry was in was in office, there wasn’t a single lay off! I’m done with this country too. I’m going to pack up my pajamas and hot cocoa from my wife’s house and move to Canada. At least there, beta males like you and I are accepted. They even have one running the country. You with me?

lyndon420

Posts: 6213; Member since: Jul 11, 2012

Please don't come to Canada...we already have too much of your kind here. You like our feminist douche of a prime minister that much? We'd be happy to trade you for Trump any day.

rouyal

Posts: 1468; Member since: Jan 05, 2018

Your kind?! Not sure if you've been informed yet, but PM Trudeau prefers "peoplekind" now as it includes all the infinite spectrum of genders.

lyndon420

Posts: 6213; Member since: Jul 11, 2012

Feel free to identify yourself as a door stop...makes no difference to me. I only need to look in my pants to know what I am. ;)

TechNeck

Posts: 599; Member since: Aug 29, 2014

If you're going to reply to me, don't act like an imbecile. You know he's the reason many international economic affairs are failing because of his propaganda that makes him seem like a president during the Cold War era or when the Red Scare was taking place.

rouyal

Posts: 1468; Member since: Jan 05, 2018

I agree! Earlier, I was getting cozy in my onesie, watching Huffington Post and listening to BuzzFeed, while drinking my Starbucks Iced Cinnamon Almondmilk Macchiato, and was thinking the EXACT same thing! It's all these macho hunters, gym rats, and military, blue collar workers (or any other alpha male types) ruining things for everyone by electing one of their kind! Why can't everyone see that? We just need to find a way to get these types to really tap into their effeminate side for things to truly change and vote like us

TechNeck

Posts: 599; Member since: Aug 29, 2014

See? This reply really shows how ignorant you are. If you're just going to joke around, don't reply. I'm not in the mood for this.

rouyal

Posts: 1468; Member since: Jan 05, 2018

You’re absolutely right. This is no time for jokes (except when we watch Stephen Colbert for the news). We have a Russian planted, dangerous orange nazi in office with the codes to the nuclear missiles, just itching to start WWIII.

TechNeck

Posts: 599; Member since: Aug 29, 2014

First of all Stephen Colbert is full of nonsense and his show is a waste of time. Second of all, I told you not to reply to me if you're going to say something imbecilic.

gamehead unregistered

That's unfortunate

tokuzumi

Posts: 1712; Member since: Aug 27, 2009

Cutting $1 billion in costs just from personnel will be laying off a lot of people. I'm sure there will be multiple cost-cutting fronts across the company, but that's a lot of money to try to save for a company of any size.

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