Qualcomm plans cuts, may spin off assets

The mobile technology company reported declines in revenue and profit

Qualcomm CEO Steve Mollenkopf at CES

Qualcomm CEO Steve Mollenkopf at CES

Qualcomm will cut costs by about $1.4 billion per year and study the possible sale of assets as part of a company realignment.

The mobile technology juggernaut is also shaking up its board of directors as part of an agreement with investment company Jana Partners. Jana, which owns a chunk of Qualcomm's stock, has pressured the company to spin off its chip division from its patent licensing business.

The realignment was announced as Qualcomm reported its profit fell by nearly half in the April-to-June quarter on revenue that declined by 14 percent from a year earlier.

"The changes we are announcing today are designed to enable us to right-size our cost structure and reposition Qualcomm for improved financial and operating performance," CEO Steve Mollenkopf said in a statement.

Qualcomm plans to cut $1.1 billion from its annual costs of $7.3 billion. It also intends to cut share-based compensation by $300 million per year. It will cut jobs, close offices and shift more operations to lower cost locations.

Palo Alto Networks Chairman and CEO Mark McLaughlin and Tony Vinciquerra, senior advisor to Texas Pacific Group and former CEO of Fox Networks Group, have joined Qualcomm's board as part of the deal with Jana. Together with Jana, Qualcomm will also appoint another board member soon.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesfinancial resultsqualcommComponents

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?