The stock of Qualcomm, Inc. (NASDAQ:QCOM) closed at $52.57 losing 4.82% in yesterday’s trading session. A large number of people are fated to lose their jobs in line with this company’s plan to cut jobs in California. Qualcomm is resorting to this move in a bid to fulfill its commitments to investors.
An official working with the company has outlined that they will be able to save about 1 billion in terms of savings by letting go 1500 people. According to him, the job cuts will be concentrating in California though the layoffs might end up touching other locations. At this point in time, there are about 33,800 people around the world working for this business guru.
Another official working with the company while speaking to several news reporters opined, “We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders.”
It was way back in January that the company made a pledge to do all within its means to improve its earnings, something it would only achieve by reducing its expenses by 1 billion.
In one of its statements, it made it clear that the cost reduction plan had been designed in such a way that it would align to the company’s cost structure. The company from time to time holds meetings to review its long term margin targets and that’s understandable considering the ever changing business dynamics experience day in day out.
In a few days to come, it is expected that Qualcomm will have given further insights to the layoffs. The WARN notices are not something new. They are mandatory for all those companies that have to walk the park of laying off 50 or more employees within a timeframe of 30 days.
It is also worth noting that the various employees must be given 60 days notice and that is to let them know that they would soon be losing their jobs. The company has indicated its willingness to provide severance payments to all those affected by the latest move.