Qualcomm Restructuring, Cutting Jobs to Bolster Bottom Line

By Jeffrey Burt  |  Posted 2015-07-24

Qualcomm started the year off on a down note when Samsung decided not to use the chip maker's new Snapdragon 10 system-on-a-chip (SoC) in its upcoming Galaxy S6 smartphone. That, combined with the dominance of Samsung and Apple of the high-end premium smartphone market—which Qualcomm executives say is more than 80 percent, limiting Qualcomm's access to that space—has helped put a squeeze on the chip maker's revenues. That and pressure from investor Jana Partners to return more to shareholders has fueled speculation over the past few months about what moves Qualcomm officials might make to shore up its business. CEO Steve Mollenkopf this week began laying out what will be a significant restructuring of the company, which will include job cuts, a reworking of the board of directors, changes in executive compensation and the continuation of a review of the business that could lead to breaking the company in two. Mollenkopf said the moves are necessary to deal with a dynamic market, but Patrick Moorhead, principal analyst with Moor Insights and Strategy, worries the changes are an overreaction to demands made by a single shareholder. This eWEEK slide show takes a look at Qualcomm's moves.


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