Tech layoffs to continue as Qualcomm plans to cut jobs after tepid demand

Tech layoffs are still very much a reality. Qualcomm, the world's largest maker of smartphone chips, has announced plans to significantly reduce its workforce. This information comes on the heels of recent reports of Meta also laying off more employees.

Qualcomm is eliminating 1,258 positions in San Diego and Santa Clara, California, according to submissions to the California Employment Development Department. The company is believed to have a 50,000-strong workforce.

According to a report by Bloomberg, the layoffs will affect a broad range of roles, with more than 750 positions being eliminated from Qualcomm’s engineering ranks, including levels from director down to technician. The rest of the cuts will come from various roles such as internal technical staff and accounting.

The job reductions are set to begin in mid-December. As a San Diego-based company, Qualcomm is required to make these filings under California rules. These obligations on announcements of job cuts do not apply to the company’s other locations.

According to the report, Chief Financial Officer Akash Palkhiwala told analysts that Qualcomm would "proactively implement additional cost actions." He added, "Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery."

The company is on track to see revenue shrink by about 19 per cent in the current fiscal year. While CEO Cristiano Amon is trying to diversify Qualcomm’s products into new areas, the company still relies heavily on the phone market for its sales. Demand for these devices, particularly in China, hasn’t rebounded as quickly as some had projected.

2023: A year of tech layoffs

The year 2023 has been marked by significant layoffs in the tech industry, with both startups and tech giants alike reducing their workforce. The layoffs have affected tens of thousands of tech workers, with the total number of layoffs exceeding those in 2022. Major layoff announcements this year include Google, Meta, Amazon, Microsoft, and Salesforce. The layoffs span across all sectors, from crypto to enterprise SaaS.

According to TechCrunch's list of 2023 tech layoffs, there has been a steady decline of layoffs this year with a peak in the month of January. Industry giants Microsoft, Amazon, Google, Salesforce announced their mass layoffs in the month of January.

Also read: Meta Layoffs: WhatsApp, Instagram parent company to fire more employees soon, says report

Also read: Tech Layoffs: Fortnite-maker Epic Games lays off 16% employees