Menu
Qualcomm plans cuts, may spin off assets

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


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuesqualcommComponentsfinancial results

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments