In an attempt to cut roughly $1.4 billion in costs, San Diego-based Qualcomm is trimming 15 percent of its total workforce, or around 4,500 jobs. The announcement came as the company announced its quarterly earnings, which beat analysts’ expectations.
Qualcomm reported earnings of 99 cents per share on the back of $5.83 billion in revenue. Per-share earnings beat forecasts (95 cents per share), but overall earnings fell just shy of expectations ($5.55 billion).
Discussing the change, Qualcomm CEO Steve Molenkampf said the job cuts were all about creating better profitability.
We are making fundamental changes to position Qualcomm for improved execution, financial and operating performance. We are right-sizing our cost structure and focusing our investments around the highest return opportunities while reaffirming our intent to return significant capital to stockholders and refreshing our Board of Directors.
Qualcomm also says it plans to introduce a new cost-cutting plan that it hopes will reduce expenditures by roughly $1.1 billion in addition to cutting jobs.