Qualcomm breakup: company might split business units to improve performance
Qualcomm hasn’t had the best 2015 so far, with the company losing a lot of business from Samsung and a wave of bad press affecting perception of the heat-laden Snapdragon 810. They also aren’t happy with their revenue outlook, according to the Wall Street Journal, and they’re currently exploring strategies to help get them moving in the right direction.
The outlet reports that one route on Qualcomm’s list of considerations is a company breakup not unlike the one Motorola performed a few years ago. The split would probably result in no more than two companies:
- The chipset manufacturing side responsible for the Snapdragon line of products and network modems
- The patent side, which makes money by licensing patented technology to other companies
Such a breakup is often designed in a way that will cut costs and reduce overhead, which would in turn make for smoother operations and better performance overall. A separate report also suggested Qualcomm is preparing to cut 10% of their workforce, which is no small amount for a company which employs 30,000 people.
Movement for change was supposedly sparked by a spirited shareholder who expressed dissatisfaction in Qualcomm’s current state of affairs, and for the company to respond — even if just for an investigation — they had to either be very influential or, well, had a whole lot of money poured into it.
Either way, they listened, and we imagine whatever they decide will be discussed during the company’s quarterly financial call taking place Wednesday. We’ll be tuned in to see what happens ourselves so be sure to circle back!