ALBAWABA - In a surprising move, Qualcomm, a major player in the mobile chipset industry, is undergoing a significant downsizing, with plans to lay off 1,200 employees.
This development comes at a time when the smartphone chipset market is primarily dominated by three key players: Apple, Qualcomm, and MediaTek.
While MediaTek is typically favored for its affordability and is commonly found in mid-range and budget smartphones, Qualcomm's Snapdragon chipsets have been the go-to choice for top-of-the-line Android devices. Nevertheless, Qualcomm's latest decision to cut its workforce is indicative of challenges faced by the company.
Currently boasting around 51,000 employees, Qualcomm's plan to lay off 1,200 workers translates to a substantial 2.5% reduction in its workforce, signifying a significant contraction.
The primary reason cited for this move is declining revenues. Qualcomm fell short of its expected chip sales figures in the last quarter, prompting the company to implement cost-cutting measures in order to ward off more severe financial difficulties.
Unfortunately, such cost-saving initiatives often lead to employee layoffs, and in this case, over a thousand individuals will bear the brunt of these measures as Qualcomm seeks to navigate its financial challenges.
