The American manufacturer Qualcomm semiconductors sold Wednesday to pressure from activist funds by announcing a restructuring that will go through several thousands of job cuts, and not excluding a split, amid falling results.
The company, which is the biggest maker of chips for mobile phones in the world, said in a presentation to investors wanting to part with 15% of its full-time enrollment.
On the basis of the 31 300 employees in late September mentioned in its last annual report, it would be about 4,700 job cuts.
Qualcomm also plans to “significantly reduce temporary labor.”
These measures are part of a plan to save $ 1.1 billion per year by the end of September 2016.
In addition to the job cuts, Qualcomm says it wants to reduce its number of offices and deploy more resources in regions where costs are lowest.
And it intends to continue to seek opportunities for additional savings “that increase profitability without sacrificing future growth potential,” according to a statement.
“We do not sacrifice the future for the benefit of this”, assured during a teleconference boss Steve Mollenkopf, recalling that the group would continue to spend more than $ 4 billion a year in research and development.
Qualcomm announced in its press parallel with the help of external consultants, it will launch a review of its structure, “including possible options for separation of activities.” This review should be completed by late December.
The group had already considered a split of its activities in 2000, but had then abandoned the project.
The topic, however, was back on the table in the spring by Jana Partners activist funds: after announcing it controlled almost 6% of the capital, Jana has called for a separation between the chip-making division and the more profitable, exploitation of patents.
For the quarter ended in late June, for which Qualcomm released its results Wednesday the chip division showed a fall of 74% year on year from its taxable income and 22% of its turnover.
Across the group, net profit was down 47% to $ 1.2 billion, for a turnover of 5.8 billion (-14%).