According to Jiweiwang news, Qualcomm’s layoff plan has once again been reported in the industry. The Shanghai R&D center will lay off 20% of its employees. In addition, Taiwan, China will also lay off 200 people in October.

According to the industry, the number of layoffs at Qualcomm's R&D center in Shanghai may reach 20%, but the compensation for the layoffs is expected to reach N+7. According to insiders, the main target of Qualcomm's layoffs is the Wi-Fi department. About 50 people in software and verification will all be laid off. Design-related personnel will be notified, and 20% of each remaining department will be laid off. In terms of compensation, it is reported that the compensation standard for ordinary employees is N+4, and the compensation standard for senior employees with non-fixed-term contracts is N+7.

Data shows that Qualcomm officially entered mainland China in 1994 and successively opened four companies in Beijing, Shanghai, Shenzhen and Xi'an, and set up R&D centers in Beijing and Shanghai.

In addition, there are rumors in the market that Qualcomm Taiwan will launch a layoff plan of 200 people in October. The number of layoffs is about 10% of the total number of existing employees of Qualcomm Taiwan, and the compensation is expected to be N+3, which means that based on seniority, then 3 more months of monthly salary.

In early August, Qualcomm released a tepid sales forecast for the current quarter, indicating that smartphone demand remains weak. Qualcomm said it is taking steps to reduce expenses and has already begun laying off employees. Last quarter, Qualcomm recorded $285 million in restructuring charges, mostly from severance pay, and expects to make more layoffs.

Qualcomm said in a previous statement that sales in the fourth fiscal quarter would reach $8.1 billion to $8.9 billion. The midpoint of that range was well below analysts' average estimate of $8.79 billion. The prospect has reignited fears of the smartphone industry's worst recession in years. Qualcomm and its chipmaking peers have seen a sharp drop in orders from phone makers whose inventories suddenly exceed demand. Qualcomm executives said on a conference call that cuts in spending on parts for mobile phones and other electronics will continue through the end of the year.

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