Qualcomm is selling fewer chips to smartphone makers. As a result, it’s posting weaker financial results for the third fiscal quarter of 2023. The disappointing sales will lead to a round of layoffs.
The smartphone market is currently still experiencing disappointing sales. Due to macroeconomic conditions, fewer devices are being sold. As a result, manufacturers still have large inventories and the need for new production is not high. This is affecting the various suppliers who, as a result, can also supply fewer components to the respective manufacturers.
Drop in sales
Qualcomm is feeling the brunt of this crisis firsthand. In its quarterly results for the fiscal Q3 of this year, the chip giant saw its revenue, compared to the same period in 2022, drop 23 percent to a total of 7.71 billion euros ($8.45 billion). Net profit fell 52 percent compared to the third fiscal quarter of 2022 to 1.64 billion euros ($1.80 billion).
Round of layoffs
The chip giant plans to cushion the setback with another round of layoffs. How many employees are involved was not disclosed. In total, Qualcomm has about 51,000 employees. Earlier this year, 451 jobs were already cut at the chip giant’s headquarters.
Qualcomm indicates that expectations for the coming quarter also remain unfavorable and will see lower sales. The recent quarterly results lead to an 8 percent drop in Qualcomm shares on the New York Stock Exchange.
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