Qualcomm cuts workforce by 15%; stock turns down
Source: CNBC
Qualcomm announced on Wednesday that it would cut its workforce by about 15 percent for a total of $1.4 billion in cost reductions. The San Diego, California-based chipmaker also announced changes to its board and executive compensation. (Tweet this)
The tech giant said it would be reviewing structural alternatives to splitting the company. Reports surfaced earlier this week that the company could spin-off its less profitable chip business, according to sources cited by The Wall Street Journal.
Shares were up as high as 2 percent in extended trading but later began to slide starting at around 4:25 p.m. ET.
Qualcomm also delivered quarterly earnings that beat analysts' expectations on Wednesday, although revenue came in at a slight miss.
The technology firm posted third-quarter earnings of 99 cents per share on $5.83 billion in revenue. Wall Street had expected Qualcomm to deliver quarterly earnings per share of 95 cents on $5.85 billion in revenue, according to consensus estimates from Thomson Reuters.
Read more: http://www.cnbc.com/2015/07/22/qualcomm-q3-earnings-2015.html
This is bad news for San Diego.
Wages are going to drop like crazy in the tech market.
Foreclosures could go up.
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