Qualcomm reports 47% drop in profits for Q2, to lay off 15% of workforce
Qualcomm reported a nearly 50% drop in profits for Q2 2015 and plans to lay off 15% of its workforce as part of a major restructuring drive to cut costs.
Image source: Qualcomm
While Apple reported another record quarter earnings, Qualcomm finds itself on the extreme opposite end with a gloomy financial report.
According to its earnings release, Qualcomm had a 47% drop in profit for Q2 2015 with net income at US$1.2 billion. In comparison, Qualcomm had US$2.2 billion net income in Q2 2014. In terms of total revenue, the chip maker saw a 14% drop from US$6.9 billion to US$5.8 billion. Shipments of its mobile chips were flat at 225 million, which were within the company's prior expectations.
As part of a major restructuring drive to cut costs, the company also announced that it will be laying off 15% of its workforce and significantly reduce [our] temporary workforce." The job cuts are scheduled to complete by the end of fiscal 2016 and is expected to bring in annual savings of US$1.1 billion.
Just two days ago, The Information and The Wall Street Journal warned that Qualcomm could lay up to 10% of the workforce and might even consider the possibility of breaking up its chip business from its patent licensing operations.
Source: Qualcomm via Ars Technica
Our articles may contain affiliate links. If you buy through these links, we may earn a small commission.