US chipmaker Qualcomm Incorporated is set to shed up to 15% of its workforce as part of a “Strategic Realignment Plan” designed to save the company $1.4 billion by the end of 2016.
Qualcomm, which designs and manufactures chips for smartphones, has faced increasing competition from Chinese chip makers.
The company said in a statement that it plans to “aggressively” right-size its cost structure by eliminating $1.4 billion in spending, including about $300 million reduction in annual share-based compensation grants by the end of 2016.
The plan is intended to “improve execution, enhance financial performance and drive profitable growth as the Company works to create sustainable long-term value for stockholders,” the company said.
Qualcomm reported a 46% drop in second-quarter profit in April, partly owing to fierce competition from Taiwanese and Chinese rivals.