On Wednesday, Qualcomm Inc, the chipmaker, said that the company has started cutting several jobs as part of its promise to its investors to reduce the firm’s annual costs by $1 billion.
A spokesperson for the company who did not want to be identified said: “Qualcomm is conducting a reduction of our full-time and temporary workforce.” However, he did not disclose the exact number of job cuts.
The spokesperson said that even though the firm first evaluated reductions on non-headcount expenses, it concluded that a reduction in workforce is needed to support the long-term growth and success of the company.
Qualcomm said that severance packages were offered to the affected employees. As of the 24th of September 2017, the company employed approximately 33,800 part-time, full-time, and temporary employees.
Bloomberg first reported the layoffs. It said that the size of the job cuts is huge enough that Qualcomm will be required to file a Worker Adjustment and Retraining Notification or a WARN notice with the state of California.
Last January, Qualcomm said that it would implement various targeted reductions across businesses in order to save approximately $1 billion in annual costs, as part of the attempt of the company to win over support from investors against a hostile bid from Broadcom Inc, its rival.
However, the said bid cancelled by the administration of US President Donald Trump on grounds regarding national security.
Since then, the chipmaker has been enhancing its operations to improve earnings growth.