Qualcomm has been facing challenges as a result of a decline in smartphone sales. Credit: Andrey_Popov via Shutterstock.

Semiconductor manufacturing company Qualcomm is reportedly preparing to initiate group-wide layoffs as part of cost-cutting measures.

The company’s decision, which will impact 5% of its staff, was attributed to falling sales and a sector-wide slowdown, reported Business Today, citing sources.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Additionally, those with knowledge of the situation said that the majority of the cuts would affect the tech giant’s mobile division.

The mobile division of Qualcomm will let go around 20% of its workforce, they added.

A source told Business Today that the company has been facing challenges because of a decline in smartphone sales.

During the first quarter earnings call in February this year, Qualcomm president and CEO Cristiano Renno Amon said the company anticipates that high channel inventory levels will continue in the first half of 2023 due to fall in demand in the handset industry.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Furthermore, weaker-than-expected demand and high inventory levels were reported across several IoT end industries.

Amon added: “Given the current macroeconomic and demand environment, we are implementing further spending reductions and streamlining operations without losing sight of the significant growth and diversification opportunities ahead.

“Combined with the actions we have already taken in the quarter, we expect to reduce non-GAAP operating expenses by approximately 5% relative to a run rate exiting fiscal ’22.”

In the quarter that concluded in December 2022, Qualcomm’s net income decreased 34% year-on-year (YoY). The company’s sales decreased by 12% from the previous year.

Last week, e-commerce giant Amazon commenced layoffs across its cloud services and human resources division.

The most recent round of layoffs is a result of a previously planned retrenchment effort that will affect 9,000 workers.

Amazon undertook a separate round of layoffs earlier this year that affected around 18,000 employees.