Qualcomm (NASDAQ: QCOM) employees at the sprawling Boulder campus were tight-lipped Thursday morning when asked about the current round of layoffs.
“I’m not allowed to discuss this,” said one staffer as she crossed the parking lot.
“I still have a job today,” said another.
The wireless chip company announced in July that it planned a 15 percent cut in its global work force of around 31,300 employees.
That translates into 158 workers at the Boulder facility in Gunbarrel.
“A work force reduction is never easy,” said Qualcomm President Derek Aberle in a news statement. “The company is providing supportive severance packages, out placement resources and career transition resources for those employees affected during this difficult time.”
The company gave 60-days notice on Sept. 17 as required by the Worker Adjustment and Retraining Act. That means for those let go, their final day is Friday, Nov. 20.
“In July, we announced a strategic realignment plan designed to improve execution, enhance financial performance and drive profitable growth,” said Qualcomm spokesperson Yelena Tebcherani in an email Thursday. “Our industry is changing rapidly, and we are therefore making fundamental changes to aggressively position Qualcomm for improved financial and operating performance. As part of the strategic realignment plan, we are making targeted non-labor and labor-related cost reductions that will regrettably impact our work force as we re-align resources with our current business objectives and highest return opportunities.”
The company also eliminated 1,314 full-time jobs at its San Diego headquarters, 130 jobs in the San Francisco Bay area, and 65 in Andover, Mass.
Earlier this year, the company took a hit when Samsung, a customer of Qualcomm’s main processor since 2011, decided to drop Qualcomm for its new Galaxy S6 phone, deciding instead to use its own Samsung-manufactured chips
“There is no question that Samsung’s decision to go with their own Exynos chips in many of their phones rather than Qualcomm’s Snapdragon chips has hurt Qualcomm,” said Chris Geier, partner in charge of Sikich Investment Banking in Chicago. “Less demand for their chips equates to less revenue, which requires either sales substitutes or a reduction of expenses, or both. Tough sledding for Qualcomm. Its market cap has been trimmed by approximately 30 percent over the last twelve months.”
Meanwhile, Qualcomm announced just days ago its plan to invest $150 million in Indian startup companies across all stages as part of its commitment to that country.
“We share Prime Minister Narendra Modi’s vision to transform India into a digitally empowered society and knowledge economy. India is at the cusp of a technology revolution and mobile technologies will lay the foundation for Digital India,” said Dr. Paul E. Jacobs, executive chairman of Qualcomm in a news release.
The Boulder campus sits at the corner of 63rd St. and Spine Rd.
Qualcomm stock, which traded at $78.53 a year ago, hovered at $53 a share Thursday.
Vince Winkel: 303-684-5291, winkelv@times-call.com or twitter.com/vincewinkel
