Thread regarding Qualcomm Inc. layoffs

False equivalency.

NXP does 1 thing. And has a fab. QC does a ton of different things. You'd be better off comparing a decision of QC to NXP or to AMD or Intel

Agree with @1hdr. The deal has taken much longer than expected, because EU approval took longer than expected in 2017 and China approval in 2018 as well. Both companies have lost at least 2 quarters so far for takeover, which is fair enough to miss the time windows of many products. Investors just don't have patience any more. Last tender extension showed that only 4% N stocks were tendered. The goal is 70%. Therefore after China approves, they will start to implement cost savings immediately. Both companies had enough time during this delay to calculate all the steps they need.

They could announce the cost savings after financial results. Either around in July or in October, because these months are the typical ones for financial releases, at which earnings calls investors dial in and want to hear how to save costs.

Of course it depends on the product and market but for full product hw/sww the normal relation is 1 to 5.

NXP revenue and head count implies that they are fully fully resourced while in Q it is clear that there are staff gaps and staff not qualified for the job they do.

NXP is a more mature company while Q suffers from more youth and being specialised in consumer markets, with everything it implies.

There is not much overlap. My feeling is that Q would wait 6 months to make redundant indirect costs like legal, finance, IT, then would lay off NXP Engineers in the name of increased productivity

Whatever JL gets assigned to fails. Sad!

Just waiting for the c team to leave..it will happen just matter of when.

The genius illuminati on the 1oth floor are trying to figure out who gets screwed to cover the $2billion mistake....you can be certain it won't be GD or SM.....

More great people getting the shaft due to poor leadership.....oh well

@vxw are you living in Mars? I think u r the one who should be fired!!

https://www.bloomberg.com/news/articles/2018-04-19/qualcomm-sets-new-deadline-for-nxp-deal-as-china-review-drags-on

"The two companies have extended their agreement until July 25 at 11:59 p.m. New York time, Qualcomm said in a statement early Thursday. If they haven’t obtained Chinese sign-off by then, Qualcomm will pay NXP the previously agreed termination fee of $2 billion, scrapping the more than $40 billion deal, which has been pending for almost 18 months."

@xar what is happening July 25?

It is worth mentioning here that N it is more hardware related i.e. Q has more SW engineers than N has. Expenses of HW engineering is higher than SW engineering (tooling, compute power etc).

The question is when will both companies start sanctions for cost reduction. This year or next year? That's the most important answer. IMHO it could be this year because investors don't have patience to wait any longer. Last tender offer announcement says only 4% stocks of N are tendered. Target is 70%. This is a bad sign because investors just don't like the current situation. From now on Q must promise more: 1)increasing the offer of 127$ to higher value 2)more layoffs 3)bigger layoffs 4)spinoffs. Whatever, they should do it as soon as the unclear situation finishes by 25 July. If the deal falls apart both companies will do aggressive cost savings immediately. A buyback of 20-30$ is from its own asset of Q. This can't be done with no cost-saving.

@vjr -yup, it needs to go down 30% post merger.

Thank you stating the obvious OP!

Status report is due at 4pm. How many test cases sid you complete this week.

I think you're being generous - only a 10-15% reduction in staffing. It probably need to be more.

I hope I'm wrong, but.....