Qualcomm on Wednesday revealed it would be reducing its full-time workforce by 15 percent in addition to "significantly" slimming down its pool of temporary staffers.
As of last year, Qualcomm had roughly 31,300 people on its payroll comprised of both part- and full-time workers. Downsizing by 15 percent, therefore, would impact around 4,500.
Qualcomm also said it would cut out $300 million in stock-related compensation for its employees. All things considered, the cost-cutting measures are expected to save $1.4 billion.
Qualcomm CEO Steve Mollenkopf said during the company's earnings call that the chipmaker would examine any and all ways to maximize shareholder value. Qualcomm had previously considered a strategic split but ultimately decided against it. With the option now back on the table, it's quite likely that a Qualcomm split would involve separating its patent-licensing and chip production businesses.
In a bid to further appease activist investor Jana Partners, Qualcomm is adding two new members to its board of directors: Palo Alto Networks Inc. CEO Mark McLaughlin and Tony Vinciquerra who serves as a senior advisor at private equity firm TPG. McLaughlin and Vinciquerra will fill vacant seats as two board members are retiring.
A third board member is also stepping down and will be replaced by a Jana Partners-approved director.
Jana Partners recently revealed it bought a stake in Qualcomm worth more than $2 billion which explains its sudden interest in Qualcomm's affairs.
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