Qualcomm Is Rumored To Be Laying Off As Much As 4,000 Jobs
Qualcomm may be about to deliver bad news to its employees. According to tech website fudzilla, the company is looking at laying off as much as 4,000 jobs. Moreover, this will reportedly be announced during Qualcomm’s next conference call to discuss the company’s Q3 fiscal year 2015 earnings with its shareholders on July 22.
This comes after The European Commission has announced that it has opened two formal antitrust investigations with regard to “possible abusive behavior by Qualcomm in the field of baseland chipsets used in consumer electronic devices.”
The European Commission shall examine if Qualcomm has breached EU antitrust rules in two possible ways. First, it has to be determined if Qualcomm had offered financial incentives to its customers on the condition that they buy “exclusively or almost exclusively” buy chipsets from the company. Moreover, the chipsets in question involve those that are compliant with 3G (UMTS) and 4G (LTE) standards, which are used to deliver mobile connectivity for smartphones and tablets.
Second, the European Commission will also determine if Qualcomm had engaged in predatory pricing. That is, charging prices that are below cost so that market competitors can be forced out. The second investigation concerns chipsets compliant with 3G (UMTS) standards.
According to Margrethe Vestager, EU Commissioner in charge of competition policy, “We are launching these investigations because we want to be sure that high tech suppliers can compete on the merits of their products. Many customers use electronic devices such as a mobile phone or a tablet and we want to ensure that they ultimately get value for money. Effective competition is the best way to stimulate innovation.”
Meanwhile, according to a statement released by Qualcomm, “We were informed that the European Commission has taken the procedural step of ‘initiating proceedings’ against Qualcomm with regard to the two ongoing investigations into Qualcomm’s sale of chipsets for mobile devices. This step allows investigators to gather additional facts, but it represents neither an expression by the Commission on the merits of the case nor an accusation against the Company. While we were disappointed to hear this, we have been cooperating and will continue to cooperate with the Commission, and we continue to believe that any concerns are without merit.”
According to fudzilla, this is the second time Qualcomm will be laying off jobs. Back in December 2014, the company announced it was going to lay off 900 employees. It ended up laying off 1,500. The company is estimated to have as much as 31,300 employees.