Big changes are in store at Qualcomm. According to Reuters, the chipmaker announced that it will cut 4,500 full-time staff—approximately 15% of its workforce—as part of a profit warning it issued for the upcoming quarter. The cuts are part of an effort to reduce costs by around $1.4 billion and boost capital returns to shareholders.
Alongside the cost reductions, the company may also spin off its its chip business, retaining the more profitable patent licensing portion. In an interview with Reuters, Qualcomm president Derek Aberle said company leadership "decided we were going to take a fresh look at the corporate structre of the company."
Reuters notes that these changes come in the face of increased pressure by hedge fund Jana Partners. Qualcomm has already agreed to add three board members at the fund's behest. The company expects to have the strategic review completed by the end of the year.