Smartphone Sales Slump Hits Qualcomm Hard, Company to Cut Jobs

Smartphone Sales Slump Hits Qualcomm Hard, Company to Cut Jobs

The global smartphone market is in the midst of a slump and tech giant Qualcomm is feeling the effects. The San Diego-based company announced on Wednesday that it would be cutting 15% of its global workforce, or about 3,300 jobs, in an effort to reduce costs and remain competitive.

The smartphone market has been in decline for several years, with global sales dropping by 6.3% in 2019. This is due in part to a saturated market, with most consumers already owning a device. The COVID-19 pandemic has only exacerbated the situation, with many consumers holding off on purchasing new smartphones due to economic uncertainty.

Qualcomm is one of the world’s largest suppliers of mobile chips, and their processors are used in many of the most popular smartphones. The company has been hit hard by the slump in sales, as the demand for their chips has declined. As a result, the company has seen its profits drop by 20% year-over-year.

In response to the situation, Qualcomm has announced that it will be cutting 3,300 jobs in 2020, with the majority of the cuts coming from its chip and modem businesses. The company is also restructuring its operations, closing some offices and consolidating others in an effort to reduce costs.

The job cuts are a significant blow to the company, but they are necessary in order for Qualcomm to remain competitive in the current market. The company is hoping that the restructuring will help them to remain profitable in the long-term, as they continue to develop new products and services.

Qualcomm’s job cuts are just the latest example of how the slump in smartphone sales is affecting the tech industry. Other companies have also had to make difficult decisions in order to remain competitive, and it’s likely that more job cuts will be announced in the coming months. It remains to be seen how the market will recover, but for now, it’s clear that the slump in sales is having a significant impact on the industry.