Qualcomm conducts selective layoffs of certain functional departments!

According to the Wall Street Journal, Qualcomm again lowered its smartphone shipment forecast last month and made a pessimistic assessment of the next few quarters. Qualcomm Chief Financial Officer Akash Palkhiwala said that Qualcomm is reducing expenditures in mature business areas, making selective layoffs in certain functional departments and preparing contingency plans.

Qualcomm lowered its sales forecast for mobile phone chips to a low double-digit percentage decline from a previous mid-single-digit decline, adding to other consumer-facing businesses that have faced demand slumps in the wake of the coronavirus-fueled boom. sharp change.

Regarding the development in 2023, Palkhiwala said: "There is a lot of uncertainty globally. There is the macroeconomic environment, the situation in the United States, China and Europe, and the new crown epidemic situation in China-how long will it take to resolve. In the semiconductor industry, Some of our customers have large inventories." Palkhiwala believes it will take several quarters to resolve the inventory issue.

As a result, Qualcomm is trying to reduce operating costs and double down on new areas, including its automotive business. Palkhiwala said the first thing Qualcomm is doing is to reduce spending in more mature business areas and reallocate those resources and funds to the "automotive and Internet of Things" areas, because these are the main drivers of Qualcomm's business growth. In addition, Qualcomm has also made selective layoffs in certain functional departments. The third thing is that Qualcomm is preparing contingency plans.