US-based chipset maker Qualcomm has started cutting jobs as part of its strategy to reduce annual costs by $1 billion, Reuters reported.
There is no information whether Qualcomm would bring down the number of jobs in India and China, two important markets for the semiconductor company.
“Qualcomm is conducting a reduction of our full-time and temporary workforce,” a company spokesperson who declined to be identified said, without disclosing the exact numbers of job cuts.
Though the company first evaluated non-headcount expense reductions, it concluded that a workforce reduction is needed to support long-term growth and success, the spokesperson said.
Qualcomm said it offered affected employees severance packages. The company did not reveal specific details. Qualcomm, which competes with Intel, Samsung, MediaTek, among others, has about 33,800 full-time, part-time and temporary employees, as of September 24, 2017.
Qualcomm, which is facing business pressure in China and the U.S., in January said it would implement a series of targeted reductions across businesses to save $1 billion in annual costs, as part of its attempt to win over investors support against a hostile bid from Singspore-based rival Broadcom.
The bid was canceled by the Donald Trump administration on national security grounds.
The chipmaker has been ramping up its business operations since then to improve earnings growth. 5G is becoming a strong focus area for Qualcomm though smartphones on 5G chip will be available in 2019 and later.