Qualcomm announces nearly 50 percent drop in profits

Qualcomm announces nearly 50 percent drop in profits
Qualcomm announces nearly 50 percent drop in profits
The weak Q3 2015 financial results show 14 percent less revenue and potentially hundreds of cut jobs.

The drop in PC sales this year may be having an effect on Qualcomm as well. The manufacturer announced that as of June 28, its fiscal third quarter of 2015 will see a wave of layoffs. The "Strategic Realignment Plan" could cut as much as 15 percent of the Qualcomm workforce and may even consider a split in the company. The chipmaker currently employs some 30,000 workers.

Revenue from Qualcomm has slumped 14 percent compared to a year earlier from $6.8 billion to $5.8 billion, and net profits are down by almost a half compared to $2.2 billion in Q3 2014. Worldwide shipments of the MSM Snapdragon chips have stagnated at 225 million units.

Qualcomm CEO Steve Mollenkopf plans to cut spending by up to $1.4 billion. There will also be a reshuffling of the Supervisory Board with a couple of new additions. CEO of Palo Alto Networks Inc., Mark D. MCLaughlin, and former CEO of Fox Networks Group, Anthony J. Vinciquerra, will have new seats as part of the committee.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2015 07 > Qualcomm announces nearly 50 percent drop in profits
Ronald Tiefenthäler/ Allen Ngo, 2015-07-25 (Update: 2015-07-25)
Allen Ngo
Allen Ngo - US Editor in Chief
After graduating with a B.S. in environmental hydrodynamics from the University of California, I studied reactor physics to become licensed by the U.S. NRC to operate nuclear reactors. There's a striking level of appreciation you gain for everyday consumer electronics after working with modern nuclear reactivity systems astonishingly powered by computers from the 80s. When I'm not managing day-to-day activities and US review articles on Notebookcheck, you can catch me following the eSports scene and the latest gaming news.