Was this the real blood river that folks have been predicting or is this just a small leak before the big one?
5 replies (most recent on top)
Your calculations don’t take into account the potential cost savings of the cancelled projects suppprted by the laid off. Maybe.
Agree. Just thought about it for a few seconds.
Qcom has laid off ~2000 people across different geographies. That is a maximum of 500 million.
That leaves at least 500 million for them to cook up some place.
ZTE had been banned for 7 years @ a run rate of approx. 600 million per year.
Ignore maverick (baked in)
Nxp merger non performance fee = 2 billion. Highly likely. Amortized over 5 years = 400 million
So there is about 1-1.5 billion in savings to be delivered over the next 3-4 years. Approximately 500 million per year.
So we have a similarly sized layoff expected this year, a 33% higher impact next year etc.
@sxh - 100% agree.
Correct!
Second one. 1B$ cost saving cannot be covered simply by 1500 heads. QCOM hast lost ZTE, losing 500M$ business. Because of trade war God knows what else they will get as penalty. EU fined QCOM 1B$ this year. With QCOM acquire NXPI, more redundant will pop up. The artificial strategy by buybacks cannnot last forever. They don't have unlimited money.
The takeover of NXPI took much longer than these guys predicted. Lots of projects are running redundantly just to keep the workers busy until the runaway train comes. And the mood of the employees are not good. The quality of the work must be bad, too. This means a lof money is burned to the air for nothing.
This 1500 is an early sign of upcoming earthquakes. Probability is getting higher to axe more employees. 2018 is maybe over, but in 2019 there will be huge, huge layoffs.
There are many signs to see that the bad days are coming. If you see to many reog changes, if people are fired by random choose, it is a sign that the doom day is approaching.
Life cannot be flowers forever. Sometimes you simply have to face the reality