In response to economic uncertainties and deteriorating U.S.-China technology relations, Qualcomm (NASDAQ:QCOM) has initiated a workforce reduction at its Shanghai and Taiwan offices. The U.S-based chip giant confirmed on Friday that the restructuring plan, which includes significant workforce reductions, is expected to be completed by March 2024.
The company stated that the restructuring is necessary to enable continued investments in key growth and diversification opportunities amid the ongoing uncertainty in the macroeconomic and demand environment. While Qualcomm did not provide specific details regarding the number of employees affected by the layoffs, it did mention that a substantial portion of the restructuring charges could be reflected in the fourth quarter of fiscal 2023.
Qualcomm dismissed rumors of a large-scale office closure or full exit from Shanghai, according to a report by China Business News. Despite facing challenges due to economic uncertainties and weakened demand in consumer electronics, which led to a 23% year-over-year revenue slump to $8.45 billion for the quarter ending June 25, Qualcomm maintains substantial operations in China across 12 cities.
The company's decision to trim its workforce comes as it aims to focus on key growth and diversification. However, it did not specify the exact number of layoffs at its Taiwan office. As part of its restructuring plan, Qualcomm is currently developing plans that will primarily consist of workforce reductions.
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