Qualcomm announces nearly 50 percent drop in profits
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.