Dive Brief:
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Qualcomm, which makes software and chips used in smartphones, tablets and gaming devices, delivered its third profit warning this year and announced plans to cut jobs and spending.
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Qualcomm said its third-quarter revenue fell 14.3% to $5.83 billion — the first quarterly fall in five years, according to Reuters.
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The company said it would reduce costs by about $1.4 billion and cut about 15% of its workforce. Qualcomm stock has lost a fifth of its value in a year.
Dive Insight:
It’s been a tough year for Qualcomm, as Samsung announced it would begin using its own processor for the new Galaxy S6 smartphone instead of Qualcomm’s. And in February, Qualcomm was ordered to pay $975 million to the Chinese government for anti-competitive practices.
The semiconductor industry has seen significant shifts in 2015, with dealmaking reaching $79.7 billion — the highest level since 2000. Other chipmakers — including Intel and AMD — are also struggling, as lower PC sales and increasing competition from China and Taiwan take their toll.
