Recent filings with the California Employment Development Department reveal that Qualcomm is set to reduce its workforce by approximately 1,258 positions across two of its California offices. As of its last annual financial filing in September 2022, the company employed roughly 51,000 individuals, signifying that this reduction accounts for approximately 2.5% of its overall workforce.
On Wednesday, the semiconductor manufacturer informed the state of its plans to lay off approximately 1,064 employees in San Diego and 194 employees in Santa Clara. The job reductions are scheduled to take effect on or around December 13 in both locations, as indicated in the filing. Importantly, these changes will not entail any facility closures at either of the two sites, as outlined in the submitted documents.
When CNBC reached out to Qualcomm for a statement, the company referred to its most recent quarterly earnings report. In the report, Qualcomm had previously indicated its anticipation of workforce reductions and associated restructuring costs. The report stated, “Given the ongoing uncertainty in the macroeconomic and demand environment, we expect to implement further restructuring measures to facilitate continued investments in vital growth and diversification opportunities.
While we are currently formulating our plans, we envisage that these actions will predominantly involve employee layoffs. In connection with such measures, we foresee incurring substantial additional restructuring expenses, with a significant portion expected during the fourth quarter of fiscal 2023. We project that these supplementary actions will be substantially completed within the first half of fiscal 2024.” On the day of this report, Qualcomm’s stock remained relatively stable.