Qualcomm, the leading smartphone chipset manufacturer, has announced that it will lay off 226 employees in San Diego, with the layoffs set to take effect on November 12, 2024. The decision is part of Qualcomm’s ongoing business diversification strategy, according to a California Worker Adjustment and Retraining Notification (WARN) notice. The San Diego Union-Tribune first reported the development.
Qualcomm’s layoffs affect 16 facilities across San Diego
The layoffs will impact employees across 16 of Qualcomm’s facilities in the San Diego region, including the company’s headquarters. While it remains unclear if the company’s cybersecurity team will be affected, the WARN notice indicates that the staff cuts are part of a broader effort to prioritize investments in emerging areas of business. In a statement, a Qualcomm spokesperson highlighted that the company’s “leading technology and product portfolio” allows it to focus on future diversification opportunities.
“Our leading technology and product portfolio has positioned us to execute on our diversification strategy. As part of a normal course of business, we prioritize and align our investments, resources, and talent to ensure we are optimally positioned to take advantage of the unprecedented diversification opportunities in front of us,” the spokesperson said.
Second round of layoffs in under a year
This round of layoffs comes less than a year after Qualcomm reduced its workforce by over 1,250 employees in 2023. The company, which recorded $35.8 billion in revenue last year, has been focusing on restructuring and shifting resources toward new growth areas, including automotive chips, the Internet of Things (IoT), and other non-smartphone markets.
Qualcomm’s recent financial performance, coupled with the ongoing restructuring, points to its strategy of preparing for the future by investing in areas expected to grow rapidly. The company’s CEO, Cristiano Amon, took home $23.5 million in total compensation last year, a figure that remains notable amid the current layoffs.
Broader tech industry layoffs in 2024
Qualcomm is not the only tech giant reducing its workforce this year. In 2024, major companies such as Cisco, Google, Microsoft, and Amazon have announced layoffs in response to changing market conditions. Cisco alone is set to lay off 5,600 employees by the end of the year, in addition to the 4,000 employees it already let go in February.
According to Layoffs.fyi, more than 60,000 jobs have been affected across 254 companies in 2024, as the tech industry continues to adjust to economic uncertainty and evolving demands. Last year, over 260,000 workers in the tech sector were laid off worldwide, reflecting a 59% increase compared to 2022.
Qualcomm’s focus on diversification
Qualcomm’s latest move reflects the company’s broader efforts to diversify its business portfolio beyond smartphone chips, its traditional core market. As the smartphone industry matures, Qualcomm is shifting its focus toward areas like automotive technology and IoT, where the company believes there are significant opportunities for growth.
Despite the workforce reductions, Qualcomm remains optimistic about its future. The company’s diversification strategy aims to position it as a leader in emerging sectors, though it continues to face the challenge of balancing workforce cuts with its innovation goals.
The 226 employees set to be laid off in San Diego represent just a fraction of Qualcomm’s global workforce, but the move underscores the growing pressure on tech companies to adapt quickly to changing markets and consumer demands.