Layoffs At Qualcomm: Over 1200 Positions On Chopping Block As Smartphone Chip Demand Takes A Dive
Portfolio Pulse from Piero Cingari
Qualcomm Inc. (NASDAQ:QCOM) is set to lay off 1,258 employees, primarily in its San Diego and Santa Clara bases, due to dwindling demand for its core product, smartphone chips. The layoffs, which include over 750 engineering positions, are scheduled to begin in mid-December. The company's shares closed the session 0.3% higher despite the news. Year-to-date, the stock has seen a 1% growth, lagging behind the VanEck Semiconductor ETF (NASDAQ: SMH) which has rallied by nearly 47%.
October 12, 2023 | 9:04 pm
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POSITIVE IMPACT
The VanEck Semiconductor ETF (NASDAQ: SMH) has rallied by nearly 47% year-to-date, outperforming Qualcomm.
The VanEck Semiconductor ETF has performed well this year, rallying by nearly 47%. This indicates a positive outlook for the semiconductor industry, despite the challenges faced by Qualcomm.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Qualcomm is laying off over 1,200 employees due to decreased demand for its smartphone chips. Despite this, its shares closed 0.3% higher.
The layoffs at Qualcomm indicate a decrease in demand for its core product, which could negatively impact its revenues and profitability in the short term. Despite this, the company's shares closed higher, which could be due to other factors not mentioned in the article.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100