Qualcomm is slashing about 1,500 jobs in California to cut costs

Bloomberg reports that, Qualcomm has started cutting jobs in California, with aims to let go of around 1,500 people to meet a $1 billion savings commitment the company made to investors. The job cuts are concentrated in California, but layoffs will also occur at other locations. The company currently employs around 33,800 people globally.

“We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” Qualcomm said in a statement to Bloomberg.

In January, Qualcomm pledged to improve earnings by cutting its expenses by $1 billion via a cost reduction plan “designed to align our cost structure to our longterm margin targets.” Qualcomm is due to file Worker Adjustment and Retaining Notification notices over the next few days to the state of California, which will likely give further insight into the layoffs.The WARN notices are mandatory for companies that undergo mass layoffs of 50 or more employees within a 30-day period.

 It also requires the company to give affected employees 60 days notice that they will be let go. Qualcomm will offer severance payments to those affected by the layoffs.