A Qualcomm dismissed 415 people of the company based at its headquarters in San Diego. This situation is a result of the drop in the cell phone market, something that has already been pointed out by IDC, with analysts signaling a new growth only in the next year.
Even though it is one of the most prominent manufacturers in this sector today, this is not the first time that the company has laid off employees. Recently, the company even filed a request for the Worker Adjustment and Retraining Notification Act in California, which led to the termination of employees.
The current scenario of this market suggests that people’s interest in cell phones has started to wane. In February this year, a survey showed the worst performance in 9 years, in addition to shrinking 14% in Latin America. Even big manufacturers didn’t get such expressive numbers.
Something that can help explain this situation is the fact that smartphone technologies have reached their peak, where there are not many paths and space for innovation. In this sense, the new releases show welcome improvements, but do not bring outliers compared to what is seen in general.
As a result, the new devices that hit the market are no longer able to surprise the public, and thus, brands are facing a decrease in sales. As for Qualcomm, the company has already laid off employees both in December of last year and in March of this year.
