The decline in smartphone sales has had a negative impact on component vendors like Qualcomm. In Q3 of 2023, Qualcomm’s sales of mobile chips decreased by 25% compared to the previous year, totaling $5.26 billion. Additionally, the net income dropped by 52% year over year in the last quarter.
Qualcomm anticipates a further decline in handset sales this year, estimating at least a high-single-digit percentage decrease. This decrease is attributed to a weaker global economy and a slow recovery in China.
To mitigate the impact of lower earnings, Qualcomm plans to lay off employees. Although the company already cut 415 jobs at its San Diego headquarters earlier this year, additional reductions are expected. Due to uncertain economic and demand conditions, Qualcomm aims to restructure and reduce its workforce. While the plans are still being finalized, significant restructuring fees are expected in the fourth quarter of fiscal 2023. The majority of these actions are projected to be completed in the first half of fiscal 2024.
As of September 2020, Qualcomm had approximately 51,000 employees. During a call with analysts, Qualcomm’s CEO Cristiano Amon revealed the company’s intention to reduce costs. Chief Financial Officer Akash Palkhiwala added that cost-cutting measures would continue into the next fiscal year.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
