American companies are gradually leaving China
According to a recent report from local publication China Business News, Qualcomm has begun cutting staff at its Shanghai office. While the US chip giant did not specify the number of layoffs, it rejected suggestions of a large-scale office closure or a complete exit from Shanghai.
The move comes amid worsening technology relations between the US and China and economic uncertainty. Interestingly, Qualcomm has large operations in China, with offices in 12 cities. The layoffs also come as demand for consumer electronics weakens, causing revenue to fall 23% year-on-year to $8.45 billion over the three months.
The anonymous employee said layoffs have already begun, but their scope remains limited. The move appears to be part of the company’s broader restructuring strategy, as evidenced by the company’s August stock exchange filing. Qualcomm plans to focus on key growth and diversification opportunities despite prevailing macroeconomic headwinds and demand fluctuations. The company also expects the majority of these changes to materialize in the fourth quarter of 2023.
Qualcomm’s activities in China deserve special attention as it plays a significant role in the development of mobile communication technologies in the country. Additionally, Qualcomm is a key supplier to Apple and the launch of the iPhone 15 in mainland China may offset some of the challenges the company faces.
Read also: Germany imposes restrictions on 5G equipment from Huawei
Source: gizmochina
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