Price’s Law says that 50% of work at a company is done by a small number of people. Specifically, it says that 50% of work is done by the square root of the number of employees.
When a company faces a setback, key employees are likely to be the first to leave. Other employers will be glad to offer them jobs. Hiring companies can be expected to offer stock options that are more valuable than what the employees have at their current, faltering company.
Losing 100 employees may not seem like much in a company with 10,000, but the consequences can be catastrophic if these key people can’t be replaced. If Qualcomm has 30,000 employees, about 200 crank out 50% of the value. I am sure most of them are working on their exit plans.
The impact of Price’s Law can be brutal in companies that are prone to fast-changing technology, Qualcomm fits the bill.