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.
Microsoft suffered its worst quarterly loss in the second quarter thanks in large part to its $7.5 billion writedown of its purchase of Nokia's devices and services business. Yet Microsoft CEO Satya Nadella said the software firm remains committed to smartphones and the broader mobile market as it prepares to unveil Windows 10, its newest operating system. He said that Microsoft would in particular focus on being more efficient in the entry-level smartphone market.
BlackBerry is cutting more jobs as the company moves to regain profitability under CEO John Chen, though it's unclear how many workers the smartphone and security software company is shedding.
Qualcomm plans to announce thousands of job cuts this week as the chipset giant faces declining prices for smartphones and rising competition from Chinese vendors, according to a report from The Information.
Microsoft CEO Satya Nadella reaffirmed his commitment to the smartphone market and said that Microsoft has a broader view of its mobile strategy than just building phones itself. The comments, in an interview with ZDNet, come a week after the software giant said it would cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business.
Microsoft said it will cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business. The layoffs and restructuring charges are the latest indication that Microsoft has not been able to gain traction in the smartphone market following its $7.2 billion deal for Nokia's handset business, which closed in April 2014.
BlackBerry said it will cut an unspecified number of jobs in its smartphone hardware and software businesses as it continues its turnaround efforts under CEO John Chen.
Sony is launching a new brand campaign to breathe life into its struggling mobile unit, according to a Sony executive. The comments come as Sony pulls back in the smartphone market, but indicate it is not exiting the market.
Ericsson will cut 2,200 jobs in Sweden, mainly in research and development (R&D) and its supply chain, as it seeks to slash costs and boost profitability. The vendor hinted at the job cuts in November, but at the time did not say how many employees would lose their jobs.
Sony confirmed it will cut another 1,100 employees from its Mobile Communications business, on top of the 1,000 job cuts it had already announced in that unit. The company, which disclosed the job cuts in conjunction with its quarterly earnings report, will prune the mobile division down to 5,000 employees by March 2016, a 28 percent cut to a unit that Sony CEO Kazuo Hirai said in the past would be a key element of the company's electronics business.