Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The chipmaker for the smartphone industry, Qualcomm, has announced an extensive restructuring programme, which includes plans to reduce its workforce by more than 4500 workers worldwide by the end of 2016. The company also plans to shift activity to lower-cost countries.
The announcement comes in response to falling revenues and a drop in the company’s net income by 47 per cent year on year, and a slowdown in the demand for chips. Qualcomm is reportedly under pressure from an activist investor. The company also plans to shift some activities to low-cost countries.
The planned cuts will affect 15 per cent of Qualcomm’s global workforce of 31,000. Qualcomm suggested that the reduction, which will affect both full-time and temporary workers, would result in a reduction of annual costs of $1.1 billion. The cuts are to affect all parts of the company and It has not yet been publicised which locations will be affected.
Qualcomm has over 200 offices across 40 countries, including in Europe, notably Ireland and the UK.
Eurofound (2015), Qualcomm, Internal restructuring in World, factsheet number 84657, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/84657.