Although the economy has rebounded somewhat since the depths of the Great Recession and companies in the wireless industry are no longer shedding jobs on a seemingly weekly basis as firms were in late 2008 and early 2009, not everything is rosy. FierceWireless has compiled a list of the five largest job cutting programs in wireless in 2015 thus far.
Sprint CFO Tarek Robbiati said the carrier plans to cut about 10 percent of operating costs to save $2 billion and thinks the company can slash another $500 million in costs related to equipment spending. "Our cost structure is bloated," Robbiati told Bloomberg by phone from Tokyo, where he was meeting with executives from Sprint parent SoftBank.
Sprint is embarking on a new cost-cutting effort geared toward reducing expenses by as much as $2.5 billion during the next six months. The cuts "inevitably will result in job reductions," Tarek Robbiati, Sprint's new CFO, said in a memo obtained by the Wall Street Journal. Robbiati also noted that Sprint is instituting an external hiring freeze.
Marvell said it is going to undertake a "significant restructuring" of its mobile chipset unit and indicated it is going to get out of the smartphone and tablet processor business. The company said it will cut around 17 percent of its global workforce and plans to continue to focus on Wi-Fi and other wireless standards "needed to support its strategies in existing markets as well as expanding into emerging opportunities" in the Internet of Things, networking and automotive markets.
Qualcomm is cutting 1,314 full-time jobs at its San Diego headquarters and hundreds of jobs in other locations, part of a previously announced restructuring the chipset giant its undertaking as it reacts to a slowing smartphone market.
Lenovo's Motorola Mobility unit will take over the company's smartphone development and manufacturing, Lenovo confirmed, as it seeks to cut costs and improve sales.
Microsoft confirmed it has ended negotiations with staff and will close Nokia's former handset product development unit in Salo, Finland. Microsoft also reiterated that it plans to cut 2,300 of its 3,200 employees in the Nordic country, part of a broader restructuring and round of job cuts the software giant announced in July.
Lenovo's Motorola Mobility unit is cutting 500 jobs at its Chicago headquarters, or 25 percent of its Chicago-based workforce, as part of a broader restructuring and layoffs at its parent company. The cuts come after Motorola moved to Chicago's Merchandise Mart area in April 2014 after years of maintaining a headquarters in Libertyville, Ill.
Smartphone makers Lenovo and HTC both said they will cut jobs as they seek to increase profitability, an indication of both weakening demand in China and other major smartphone markets as well as the difficulty of Android-focused OEMs to achieve a profit.
Qualcomm struck a deal with an activist shareholder and agreed to cut $1.4 billion in costs, slash up to 15 percent of its workforce, change some of its corporate practices and review whether to split up its chipset and licensing units. The announcement, which came as the silicon giant reported disappointing earnings, was largely in line with the demands that the investor, hedge fund Jana Partners, had spelled out in mid-April.