News Categories

Qualcomm reports 47% drop in profits for Q2, to lay off 15% of workforce

By Cookie Monster - on 24 Jul 2015, 6:00am

Qualcomm reports 47% drop in profits for Q2, to lay off 15% of workforce

 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

Join HWZ's Telegram channel here and catch all the latest tech news!
Our articles may contain affiliate links. If you buy through these links, we may earn a small commission.