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Qualcomm slashes 415 jobs as smartphone sales slump

By Nithya Bose in US business news, posted June 21, 2023

Qualcomm has laid off 415 employee from its San Diego headquarters last month to reduce expenses in the face of a persistent slowdown in smartphone sales.

The job cuts, effective in mid-July, were disclosed through Worker Adjustment and Retraining Notification Act (WARN) filings.

Most cuts were concentrated in engineering, with approximately 300 eliminated positions.

The layoffs were not limited to San Diego, as 84 workers were also let go in the Bay Area.

Qualcomm is primarily known for designing semiconductors and providing mobile technologies to smartphone manufacturers, automakers, and Internet of Things (IoT) companies.

The San Diego company has been grappling with sluggish smartphone sales, particularly in China, which has impacted its growth this year.

This recent round of job cuts follows two smaller layoffs in December and March, which collectively reduced Qualcomm's San Diego workforce by 232 employees.

Qualcomm remains the largest technology firm in San Diego, employing approximately 12,000 workers locally.

The company declined to comment on the matter.

CEO Cristiano Amon said: “We are actively managing operating expenses 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.”

To diversify its business beyond smartphones, Qualcomm has been working on collaborations with car manufacturers for in-vehicle connectivity, digital dashboard/infotainment systems, and autonomous driving.

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However, smartphones still play a significant role in Qualcomm's revenue.

Over the past year, San Diego has witnessed increased layoffs among large and small tech companies.

TuSimple, a self-driving technology startup for semi-trucks, cut nearly 300 local jobs.

General Atomics Aeronautical Systems, a military drone manufacturer, reduced 160 positions.

Additionally, satellite operator Viasat laid off 107 workers, and even companies like Amazon and Google have shed positions at their San Diego satellite locations.

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