The American chipmaker has laid off a significant number of workers in San Diego.
The American global semiconductor manufacturer, Qualcomm, has disappointed the residents of the US. Qualcomm news affirmed that it has reduced 1314 full-time opportunities in San Diego and numerous job opportunities in other parts, as it overhauls its activities in an attempt to deal with slow progress in the growing smartphone sector.
The wireless chipmaker issued a two months’ notice on Thursday as needed by the Worker Adjustment and Retraining Act. For the dismissed workers, their last date is November 20. Qualcomm news today exclaimed that it has issued notices to cut jobs of a majority of people that it anticipates to make during its reorganization.
An official at Qualcomm, Derek Aberle stated, “A workforce reduction is never easy. The company is providing supportive severance packages, outplacement resources, and career transition resources for those employees affected during this difficult time.”
Qualcomm breaking news reported that in July, the Californian enterprise shared proposals to cut down its global workforce of 31,300 by 15% in different parts of the world. It intends to decrease expenses by $1,400,000,000 yearly. In May, the firm hired 15,000 short-term, part time, and full time workers in San Diego.
An economist at the National University System Institute for Policy Research, Kelly Cunningham has stated that even so, dismissed employees might not be able to easily find occupations in the area at wages, which they had been previously earning from Qualcomm.
In 2014, the number of Communications Equipment jobs was 27,822, with a yearly $133,500 annual wage. The rate at which jobs had risen in the industry was 2.4%, as disclosed by the state Employment Development Department.
“These are high paying jobs,” stated Cunningham. “So to lose those has a ripple effect on other employment”. The company acknowledged that it had reduced 158 job opportunities in Boulder, Colo., 65 in Andover, Mass., and 130 jobs in the Bay Area – areas where it was needed to issue two months long warn notices.
It is probable that the latest job cuts would not only damage the chip-manufacturing giant’s reputation in the highly competitive world but also adversely affect the largest economy. Market analysts have claimed that the recent development would play a significant role in lowering the taxes paid to them.
Qualcomm management should compensate the laid off employees to address their concerns. Downsizing is a common phenomenon in corporations that are striving to maintain profitability and revenue growth. The rivalry between Samsung and Qualcomm resulted in losses for the latter, which consequently compelled it to lay off workforce.