What other cuts is Qualcomm implementing to save $1 billion? Unless these 1500 people all had pay of nearly $700K a year (yeah, right), there is plenty more left to do to achieve the full billion.
Will there be more layoffs or are we looking at different cost saving options? What else can be done?
Keep in mind the equation for 4000 is under the assumption that all heads axed were from NA. If there are heads axed from Asia that the # must be way more than 4000. Typical ration is 1 head in NA is equivalent of ~2.3 heads in Asia roughly. Now do the math accordingly.
lay-offs are not revenue neutral themselves. They incur costs in the short-term so balancing them against 1B$ might require some additional accounting and HR tricks and gimmicks. Expect to hear about one time costs due to restructuring in the next quarterly earnings call.
They will Also lower the bonus and restricted stock pools this year to save on compensation vexpense. Same as 2015. Expect they will not tell anyone about this till late in the merit cycle sometime in October after they finish the year.
Around 1500 are laid off in USA. There are hundreds more laid off in other countries.
The billion dollars savings is harvested over a number of years. There will probably be zero saving this fiscal year beacuse it is expensive to lay people off (severance, geo shifting, etc.). The goal is to have long term lower costs.
@mkm is fully right. This company has 30000 employees, 15000 only in SD, say in California. They have fired 1500 here in this round in this state. Take a look at the thread @SMTpXbN. Some employee said 85% of CPU team in Austin has been vaporised. Very rough estimate: If there are, say, 20000 employees in US, and if you extrapolate through the numbers in California only, then it is around at least 2000+ in this round. So, about 500 employees have not been reported officially yet. This is roughly 25% of this round's head cut.
For 1B$ cost saving even with unreported numbers, say, 2000 is not enough to survive. More are coming!!!
This topic has been discussed many times in the past. Average ~200k per employee ( Included pay and other benefits).
California reduction saved ; 300 mil average.
They seem to have done some other non pay roll improvements, unclear what they are are. Get ready for grilling next weeks earnings Mr. SM/CA ( no more iikosystim )
So what they are telling is that they are going to save 700 mil else where. Crap!
When you lay someone off, you save much more than just their salary.
Keep in mind the 1,500 was in California alone. There were cuts in many other locations whose figures were not reported since there wasn't a legal obligation to do so.
That's right but do remember this is only first cut, atleast another in pipeline depending on the situation. With first one there's a little over 500mil saved. This is just to get some more dough from "other" sources. Believe if you wish. Lot of them did not believe in this forum trashing saying its all rumour.
they only believe in layoffs when it comes to cost cutting. expect more of the same.