Qualcomm Weighing Potential Breakup and Job Cuts
Qualcomm is preparing to conduct an in-depth review of its corporate strategy that could lead to the company breaking into several separate entities, reports the Wall Street Journal. Activist investors have begun to push Qualcomm towards a possible split, which would see the company's chip-production and patent-licensing businesses pulled apart. Jana Partners, which has a $2 billion stake in Qualcomm, would like to see Qualcomm cut costs, repurchase shares at a faster rate, and shake up its executive board. Qualcomm has come under fire for its chip-licensing practices this year. It settled an investigation in China for nearly $1 billion, and is now facing a similar investigation in Europe. Earlier this year, Qualcomm said it was displeased with its economic outlook and would consider making changes. Qualcomm did not confirm the Journal's report. A second report from The Information suggests Qualcomm is on the brink of slashing thousands of jobs. Qualcomm may cut as many as 4,000 jobs from its global roster of 30,000 employees. Qualcomm did not comment on The Information's report. The company may reveal its plans as soon as Wednesday, when it is expected to disclose its second quarter earnings.
Qualcomm Settles with SEC Over China Incentives
Qualcomm today agreed to pay the SEC a fine of $7.5 million to settle an investigation being conducted over potential Foreign Corrupt Practices Act (FCPA) violations. The SEC alleges that Qualcomm improperly gave state representatives of China financial benefits including travel, jobs, gifts, and event tickets.
Xiaomi Licenses Qualcomm's 3G/4G Tech
Qualcomm today said it signed a patent licensing agreement with Xiaomi, which will use Qualcomm's 3G and 4G wireless technology in future mobile devices. Qualcomm said it has agreed to royalties that are inline with the terms set by China's National Reform and Development Commission.
Qualcomm Strikes More Patent Licensing Deals in China
Qualcomm has signed new patent licensing agreements with Haier, Tianyu, and QiKu Sign, all of which will use Qualcomm's 3G and 4G wireless technology in future mobile devices. Qualcomm said it has agreed to royalties that are inline with the terms set by China's National Reform and Development Commission.
Qualcomm to Cut Jobs Amidst Cost Restructuring
Qualcomm today said it will pursue aggressive cost restructuring, including the elimination of jobs, as it seeks to balance its financials. Qualcomm indicated it plans to slash $1.4 billion in expenses through a number of different actions, including job cuts of about 4,500, or 15% of its work force.
Qualcomm to Hold Onto Chip Biz for the Time Being
Qualcomm does not plan to sell off its mobile chip business, according to Executive Chairman Paul Jacobs. Investors have been putting pressure on Qualcomm to spin off the unit, which one called "worthless." Some would prefer that Qualcomm operate strictly as a patent-licensing business.