Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Rain and Snow, kinja, Mr. Aviation for the delivery of clues! CTOnews.com May 3, according to foreign media Business Today quoted insiders reported that chip maker Qualcomm will announce global layoffs of 5% in its quarterly results released on May 3, a decision due to the decline in global smartphone sales and the downturn in the technology industry.

Qualcomm's mobile division will be hardest hit by layoffs and will lay off about 20 per cent of its staff, according to people familiar with the matter. Qualcomm's mobile division, which produces smartphone chips, is one of the company's main sources of revenue.

Business Today asked Qualcomm for confirmation and received a statement from the company's CEO, Cristiano Amon, on an earnings call in February. "given the current macroeconomic and demand environment, we are implementing further spending cuts and streamlining our operations without ignoring significant future growth and diversification opportunities," Amon said. This is consistent with our commitment to actively manage operating expenses in our last earnings call. Combined with the actions we have taken in the quarter, we expect operating expenses under non-GAAP to be approximately 5% lower than at the end of fiscal year 22. "

Another person familiar with the matter pointed out that Qualcomm is facing a dilemma caused by declining smartphone sales. "Qualcomm has been affected by the decline in smartphone sales over the past few quarters, and the company is readjusting resources," the person said. "

According to CTOnews.com 's public information, Qualcomm's net profit fell 34% year-on-year and revenue fell 12% in the quarter ended December 2022. The results are attributed to the macroeconomic slowdown and falling demand for mobile phones. The decline in smartphone sales has directly affected Qualcomm because chip manufacturing is one of its main sources of revenue.

In January, IDC reported that global smartphone shipments fell 11.3% in 2022, leading smartphone makers to be cautious. In addition, in its latest report, the research institute noted that global smartphone shipments are expected to fall by a further 1.1% in 2023.

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