Qualcomm, the San Diego-based microchip manufacturing giant, has announced plans to reduce its workforce.
Despite recent high-profile deals with Apple and Meta Platforms, the company is set to lay off approximately 1,258 employees across various roles in California.
Qualcomm Cuts Staff Amid Declining Revenue
The layoffs, part of a broader cost-cutting strategy, come in the wake of declining revenue, a challenge that Chief Financial Officer Akash Palkhiwala acknowledged in an August call with analysts.
“Given our commitment to operating discipline, we will proactively implement additional cost actions. Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery.”
This news comes hot on the heels of Qualcomm’s announcement to supply 5G microchips to Apple through at least 2026 and its role as the chip supplier for Meta’s newly announced Quest 3. However, Qualcomm isn’t the only tech giant grappling with workforce reductions.
Meta Platforms, the pioneering force behind the metaverse, is reportedly planning a substantial downsizing within its Reality Labs division. This division, also known as the Facebook Agile Silicon Team (FAST), is integral to Meta’s AR and VR product development.
The extent of the layoffs remains undisclosed, but insiders suggest they could significantly impede CEO Mark Zuckerberg’s ambitious metaverse project.
Read more: 10 Metaverse Platforms To Watch Out for in 2023
Tech Sector Trying to Find a Foothold
Despite these challenges, Meta remains committed to innovation, with promising developments such as smart glasses and AR glasses in the pipeline. However, the company’s struggles with chip production persist, leading to reliance on external providers like Qualcomm.
The workforce reduction at Meta follows a series of layoffs, with around 21,000 jobs slashed since November last year. This move is seen as an attempt to control costs amid slowing revenue growth and rising inflation.
The layoffs at Qualcomm and Meta indicate industry-wide challenges, even as these companies continue to innovate. It’s a stark reminder that even major players in the tech industry are not immune to economic pressures and the need for fiscal discipline.
As these giants navigate their respective challenges, the industry will be watching closely to see how these developments impact their future trajectories.
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