April 16 news, foreign media broke a Qualcomm layoffs news. The media broke the information shows that Qualcomm Internet of Things team will lay off 40%, server team layoffs, and the rest of the transfer, QCT (Qualcomm CDMA Technology Group ) Will lay off 80 people.
It is rumored that the layoffs of staff and senior staff are affected more, and engineers and senior engineers are less affected. In the next two years, except for 5G-related jobs will be in the United States headquarters, other aspects of the work will be transferred to India. Senior management will stay at the headquarters in San Diego, Qualcomm is currently in the process of discussing the hiring of the park in Hyderabad, India.
Sources pointed out that Qualcomm has long been deployed in India, and the software team is basically in India. In recent years, Qualcomm has also invested in India for many times. From the perspective of Broadcom's attention to the 5G international competitiveness of Qualcomm’s 5G sector reflected in the Broadcom acquisition case. Staying in the United States is inevitable, while other teams are shifting to other countries or intending to reduce costs. After all, Qualcomm is now facing huge financial pressures. After the Qualcomm layer announced a $1 billion annual cost reduction plan.
After experiencing Broadcom’s hostile takeover, Qualcomm continues to return to growth. The board of directors urgently needs shareholders’ approval. NXP’s acquisition is seen as an important transaction that boosts share price and shareholder confidence. On the one hand, Qualcomm needs to convince Nichi. Pu's shareholders agreed to this acquisition, on the other hand, to wait for the global regulatory review.
In January of this year, NXP announced that the deadline for the completion of the transaction was extended to April 25, which has been postponed several times. From the current situation, Qualcomm may also need to negotiate with the NXP to postpone again.
At the same time, Qualcomm’s acquisition of NXP was only inferior to the position of the Chinese Ministry of Commerce, but with the escalation of trade frictions between China and the US, China is slowing down the review of Qualcomm’s acquisition transaction, which has added to NXP’s acquisitions. Multivariate.
In April of last year, Qualcomm submitted a review application to the Ministry of Commerce of China. Usually, the review period is six months (180 days). If the deadline is exceeded, the application must be resubmitted. On April 17, Qualcomm submitted the second review to the Ministry of Commerce. Deadline.
Informed sources said that as the Ministry of Commerce slowed down the approval process, Qualcomm had withdrawn its application last Saturday and will soon re-apply to the Ministry of Commerce of the People's Republic of China, which is intended to give the Ministry of Commerce more time for approval. In order to avoid this transaction being rejected, the merger and acquisition case has also become the first time in the history of the Ministry of Commerce that two 180-day deadlines have not been completed.
Given the current complex situation of Sino-US trade, the suspension of auditing chip transactions may become an important bargaining chip for China to deal with the US trade war. It is expected that Qualcomm’s approval of NXP’s acquisition will still be difficult to pass.