The news from Qualcomm's latest quarterly financial results is not good for the mobile processor maker. It has announced plans to cut its spending by $1.4 billion, along with about 15 percent of its workforce.
The company stated:
"Qualcomm is implementing a comprehensive cost reduction action to reduce annual costs from its fiscal 2015 levels of $7.3 billion (adjusted for variable compensation) by approximately $1.1 billion through a series of targeted reductions that will not jeopardize the Company's growth objectives or core technology roadmap. These cost initiatives include reductions in headcount and temporary workforce, streamlining the engineering organization, reducing the number of offices and increasing the mix of resources in lower-cost regions. The Company is also reducing annual share-based compensation grants by approximately $300 million. While these specific cost initiatives are expected to be fully implemented by the end of fiscal year 2016, the Company will continue to examine its cost structure for additional efficiencies that enhance profitability without sacrificing its future growth potential."
Qualcomm has previously stated in April that it was cutting its revenue predictions for the second half of its fiscal year due to lower sales of its Snapdragon processors to smartphone companies.