Chip revenue and profit plummet, Qualcomm to conduct layoffs to cut costs

Qualcomm to cut costs with layoffs as chip revenue and profit decline

【Phoneauto News】On August 3rd, Phoneauto noticed that the American chip giant Qualcomm announced its latest financial report for the third quarter of the 2023 fiscal year. Subsequently, Qualcomm CEO Cristiano Amon stated during a conference call with analysts that the company will further reduce costs. Qualcomm stated in the documents submitted to regulatory agencies that cost-cutting measures mainly include layoffs, but did not specify how many jobs will be affected. As of September last year, Qualcomm had approximately 51,000 employees. Previously, Qualcomm had also conducted layoffs during periods of economic downturn.

According to the financial report data, in the third quarter of the 2023 fiscal year, Qualcomm’s total revenue was 8.451 billion US dollars (approximately 40.6 billion RMB), a decrease of approximately 23% compared to the third quarter of the 2022 fiscal year; net profit was 1.803 billion US dollars (approximately 13 billion RMB), a decrease of approximately 52% compared to the third quarter of the 2022 fiscal year; QCT department revenue was 7.174 billion US dollars (approximately 51.59 billion RMB), a decrease of approximately 24% compared to the third quarter of the 2022 fiscal year; mobile chip revenue (which belongs to a part of QCT department revenue) was 5.26 billion US dollars (approximately 37.8 billion RMB), a decrease of approximately 25% compared to the third quarter of the 2022 fiscal year; QTL department revenue was 1.23 billion US dollars (approximately 8.845 billion RMB), a decrease of approximately 19% compared to the third quarter of the 2022 fiscal year.

Currently, Qualcomm’s revenue mainly relies on the sales of smartphone chips, such as the Qualcomm Snapdragon mobile platform. However, the global smartphone market is still declining, and the recovery of the Chinese smartphone market is also slow.

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