Where there is competition in any big market, there is bound to be a loser. In the tech world, more specifically in the business of making chips for smartphones, Qualcomm Inc is losing the battle by a long shot.
Major, major layoffs are expected to be made within the company according to sites such as Fudzilla and The Information. As many as 4,000 jobs are expected to be cut and announced this Wednesday when their quarterly results are released, but which sections are most in jeopardy is still unknown. Though terrible for those employees that are nervously praying to keep their jobs, it is an opportunity for the business, which has received poor publicity as of late, to do some serious restructuring.
Qualcomm’s second quarter results are a pretty clear-cut indication of the desperate need for cost-saving and reorganization of the company. They suffered a 46 percent decrease and continue to be overshadowed by other chip-making companies, namely MediaTek chips, which produce their products for cheaper for customers such as Google’s Android One partners.
Wednesday’s results are not expected to be anything less than a continuation of that disaster, considering they lost one of their longtime customers. After Samsung decided to go with an in-house Exynos processor as opposed to a Qualcomm, the reality of their downhill spiral definitely hit the company’s pockets hard. In order to cutback costs, Qualcomm intends on sending their research and development efforts over to China or India.
As if that wasn’t a big enough slap in the face, the company is also being investigated for using illegal methods in order to ward off rival competitors according to a Reuters report. That apparently didn’t work out well, but the point of the matter is that Qualcomm needs a makeover. With their snapdragon 810 receiving nothing but criticism following its release, they are hopeful that the snapdragon 820, which will release before the end of the year, turns their luck around a bit.
But, we will see if the rumors are true this Wednesday.