A Business Insider headline puts the news and purpose right up front:
Qualcomm is reportedly laying off as many as 1,000 employees as part of a $1 billion cost savings plan
The decision comes after a hostile takeover bid from Broadcom, a competitor in Singapore. Qualcomm made a commitment to save costs to its shareholders and appears to be following through, despite that the failing takeover bid.
A Bloomberg report reminds us that the company cut jobs in 2015, as well, in response to an activist investor's interests. A New York Times article calls Qualcomm "collateral damage" in "a looming trade war between the United States and China" that may impinge the company's growth.
The company declined to comment on news stories, and nothing related to layoffs is posted on its website.
- Should Qualcomm executives be more forthright about the change? What, if anything, should they communicate to the public and how?
- How do you assess the admission that the layoffs are intended to ward off hostile takeovers and reduce costs? How do you think these reasons would be received by shareholders? the press? customers? employees?
- How are the news and the company's communication an issue of integrity for Qualcomm?