In response to a persistent decline in demand, American semiconductor giant Qualcomm is set to downsize its research and development (R&D) facility located in Shanghai, China.
Despite the restructuring, Qualcomm has clarified that there are no plans for extensive layoffs at its Shanghai facility, which has been operational since 2010 and currently employs close to 393 individuals. The R&D center, a substantial multi-million dollar investment, is strategically located within the Zhangjiang Hi-Tech Park in Shanghai, a hub for technological innovation and development.
This move comes amidst a challenging period for Qualcomm, as the company grapples with a notable slump in smartphone sales. The impending downsizing measures, including staff redundancies and other strategic adjustments, are primarily slated for the fiscal fourth quarter. The restructuring efforts are anticipated to incur significant additional costs for Qualcomm, Chinese news service Yicai Global said.
In August, Qualcomm issued a warning regarding the ongoing downturn in smartphone sales, hinting at potential job cuts to navigate through the industry’s challenges. Their latest financial report revealed a substantial year-over-year drop in revenues, standing at $8.4 billion — a 23 percent decline, coupled with a significant 52 percent decrease in net income to $1.8 billion, largely attributed to the enduring slump in the smartphone industry.
The company also maintains an R&D presence in Beijing, aiming to strategically streamline its operations and navigate the evolving landscape of the technology industry.
