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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