Qualcomm to scale back employees in China amid dwindling smartphone demand

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The Qualcomm R&D facility in Shanghai, China opened in 2010 and employs almost 400 employees

Whereas Qualcomm has denied rumors that it plans to close its Shanghai R&D facility or enact “large-scale” layoffs in China, it did reveal that can cut back the ability’s employees, citing weak demand for smartphones and the nation’s slowing financial system.

The Shanghai facility opened in 2010 and employs almost 400 employees. The chip firm instructed Chinese language information outlet Yicai International that the influence received’t be a lot of a lower, however as an alternative, extra like a job trim. A lot of the layoffs, stated Qualcomm, will happen this quarter and the remainder will observe over the following six months.

China is experiencing ongoing stoop in smartphone demand, and extra pointedly, the federal government has banned its officers from utilizing Apple’s iPhone, with additional reaching bans rumored — though not confirmed — threatening to tremendously influence Qualcomm, which provides iPhone modem chips.

Additional, U.S. sanctions proscribing the sale of superior chips in China have additionally affected Qualcomm’s enterprise as its main Chinese language prospects reminiscent of Huawei and ZTE have been compelled to chop orders.

“As time strikes ahead, the U.S. ban means Chinese language firms like Huawei and ZTE are compelled to seek out new methods to satisfy their very own wants,” wrote Analyst Jeff Kagan. “Since Huawei can’t do enterprise with Qualcomm any longer, they’re discovering different methods to satisfy their wants with 5G chips and HarmonyOS, which replaces Google Android.” 

Qualcomm additionally has an R&D facility in Beijing, and places of work in additional than 12 Chinese language cities.

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