Yesterday we reported that Qualcomm might be laying off 10% of its work force. Today, Qualcomm has announced a plan that will cut even more jobs than that in an effort to cut spending by $1.4 billion USD.
Although Qualcomm is one of the more successful companies producing chips, they have had a bumpy ride in 2015. Qualcomm was able to ship its latest processor for mobile, the Snapdragon 810, but it was plagued with overheating issues which Qualcomm denied. Samsung also parted ways with the chip vendor as they decided to utilize their own Exynos processor. Qualcomm will now try to right the ship by cutting jobs and enacting a new plan.
The core elements of the new plan include:
- Aggressively right-sizing the cost structure by eliminating approximately $1.4 billion in spending, including an approximately $300 million reduction in annual share-based compensation grants; Company expects to achieve this run-rate by the end of fiscal year 2016
- Reviewing alternatives to the Company's corporate and financial structure
- Reaffirming the Company's plan to return significant capital to stockholders
- Adding new Directors with complementary skills while reducing the average tenure of the Board of Directors
- Further aligning executive compensation with performance, including returns on investment
- Disciplined investment in areas that further Qualcomm's leadership positions, build upon the Company's core technologies and capabilities and offer attractive growth opportunities and returns
For more details, be sure to hit the Qualcomm source link below .