Qualcomm may sack 4000 employees, spin off its chipset-making operation

Qualcomm may sack 4000 employees, spin off its chipset-making operation
After a long, uninterrupted runup to mobile chipset (and lucrative royalties) glory, Qualcomm began to crack this year, due mainly to the Snapdragon 810 overheating conundrum. The company is rumored to sack about 4,000 employees in total, in addition to the ones it already let go late last year. On top of that, Qualcomm is being investigated by the European antitrust body, and paid China almost a billion for the same reason already.

Still, this might be a simple process of restructuring and reorganizing things to cut costs that all big companies go through after a bump in the road, which might even send the share price higher. The loss of Samsung as one of its biggest customers might sound like a fatal blow, as it placed its own Exynos 7420 in the Galaxy S6, as opposed to the Snapdragon line, but chipset foundry is in fact not the main source of business for Qualcomm. 

The company thrives mainly on patent licensing and royalties to the tune of $32 billion of cash on hand, and no debt, so we wouldn't exactly worry about them. Analysts are pressing for Qualcomm to separate its lucrative technical licensing from the chip making business that has thinner margins and causes much bigger headaches, but the company might be satisfied with simple restructuring, betting on its future chipsets, like Snapdragon 820, for instance. 

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35 Comments

1. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

LMAO I hope them OEMs who used the SD810 should sue them too!.....until they file for bankruptcy

13. FoneAddict

Posts: 263; Member since: Jul 05, 2011

Qualcomm peaked with the SD801. After that everything started to go down hill as they rushed products to market that were simply not fit for purpose. Looking on the bright side, they could make a a successful business of manufacturing portable heaters!

15. Mercedes-Benz

Posts: 403; Member since: Jan 18, 2015

S805 is very good

23. vincelongman

Posts: 5692; Member since: Feb 10, 2013

Yep, I'd say 805 was their peak After the 800 was when they started stagnating

36. techperson211

Posts: 1280; Member since: Feb 27, 2014

Loosing a job is everyone's nightmare. Hopefully these employees get some compensation and be at work immediately.

16. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Well, perhaps the whole mobile SoC technology has peaked...unless they can come up with a cutting-edge cooling solution that can push these SoC's potential even further....I'm not hoping for a miracle in the next few years....Cooling technology is what limits these chip makers from progressing

38. epdm2be

Posts: 822; Member since: Apr 20, 2012

Handset manufacturers can start by making handsets a bit thicker. Ditch that obsessive anorexic goal and give handheld computing devices the proper thickness to cool their powerful SoCs. That will solve half the problems with ANY CPU/GPU. BTW. Battery technology is what's keeping consumers from buying new flagship devices! Perhaps it's time that the ridiculous pace from the mobile cpu/gpu-industry tones down a bit to 1) fully mature their products before going into production, 2) give battery-tech the time to catch-up and 3) allow punters to enjoy their device a bit longer then 1 year!

25. medicci37

Posts: 1361; Member since: Nov 19, 2011

The 801 sucked. It was just a overclocked 800. When Qualcomm released that chip & the oems bought it, they started slacking

20. lallolu

Posts: 732; Member since: Sep 18, 2012

You think bankruptcy is a joke right?

2. fyahking

Posts: 1146; Member since: Jan 28, 2015

Hahaha, Qualcomm your Dragon got slayed!

17. Neros

Posts: 1016; Member since: Dec 19, 2014

Sammy the dragon slayer.

19. BaffledTruffle

Posts: 523; Member since: Dec 07, 2013

Nah, Qualcomm slayed its own Dragon.

3. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

It was just a couple of years ago when they were at the top of the food chain and MEDIATEK and INTEL were seemingly at the bottom end of the spectrum....oh times have changed, the mighty has fallen

4. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

That's what happens when you start losing quality and release products like the SD 810. The SD 805 had it's own issues but it was by far a better chip than the 810. We always thought that after the 805 the 810 would be an insane beast (it is a beast but the heating issues makes the beast not feel like a beast) TBH, they should have just ditched the entire 810 line when they found out about the heating issues and just focused on 808 or just use 805 and focus on making the 820.

5. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Well, they succumbed to Marketing pressure and perhaps, GREED.....They needed to put out a new product in the market.....Samsung was wise enough not to fall for it....Other OEMS had no choice probably Now that it Backfired so heavily, I'm afraid it's the end for them

7. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

Now that's something I can say for sure that Samsung did well. They went ahead and did Exynos for their S line/ Note 5 line which is a fantastic chip on both benchmark/real life scenario (it is a great chip and im not being a fanboy, been with a S6 Edge and the mix of LPDDR4 with Exynos chipset is great.. especially if you put a stock android on it ;) More and more OEMs should ditch Qualcomm and just use Intel or convince Sammy to make them Exynos.

12. hound.master

Posts: 1044; Member since: Feb 27, 2015

Samsung was wise I'm sure the user of exsynos in S6 got exactly nothing to do with the so said 810 problems. And i still say this overheating doesn't exist for this soc.

39. epdm2be

Posts: 822; Member since: Apr 20, 2012

No, handset makers shouldn't have made their devices so bloody thin! Stop accusing Qualcomm from making a bad SoC. The handset makers are as much to blame as Qualcomm!

6. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

I feel sorry for the sacked employees. People who were responsible for the SD 810 should be sacked not others. I wish Sammy would use Exynos in all their phones.

8. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

Let's hope they continue to do so

9. 99nights

Posts: 1152; Member since: Mar 10, 2015

This comes as not much surprise.

10. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Time to mediatek to shine

11. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

If they in fact give good information about the CPU & GPU to the Devs and make it more friendly sure. Until then it won't happen.

14. hound.master

Posts: 1044; Member since: Feb 27, 2015

Well i don't think mediatek will ever shine why? 1. Their octa core socs is no different with others (the old exsynos's and SD 810) hot like hell. 2. Their graphic units sucks. 3. No world wide availability mostly in China. 4. No soc to compete with flagship ones.

40. epdm2be

Posts: 822; Member since: Apr 20, 2012

then we'll have NO open source info to create custom ROM's or tweaks. Mediatek has a BAD reputation with regards to sharing information about their products. So thanks but No thanks! I'd rather have an a lower specced Qualcomm than that garbage from Mediatek

18. redmd

Posts: 1935; Member since: Oct 26, 2011

That's bad. Qualcomm better fix this problem fast.

21. iLovesarcasm

Posts: 589; Member since: Oct 20, 2014

Fire breathing Snapdragon can't take the heat.

26. Clars123

Posts: 1078; Member since: Mar 16, 2015

Remember when everyone said the Snapdragon 810 issues was just propaganda by Samsung to sell the Exynos 7420? Qualcomm should have risked taking more time to bring a proper product because now by the time the 820 comes out other chip manufacturers would have made chipsets of equal or greater performance.

37. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

The Oneplus2 is coming with an 810 as well.. but its revision 2.1 lololol I wonder if its any cooler

28. InspectorGadget80 unregistered

Where's Nvidia when you need them? Miss their Tegra processor

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