Qualcomm is laying off more than 1,500 people

Kudlow on what a trade war looks like: 'I don't know. You tell me.'
Kudlow on what a trade war looks like: 'I don't know. You tell me.'

Qualcomm is axing more than 1,500 jobs across California and an undisclosed number in other parts of the United States and around the world.

The San Diego-based chipmaker says the cuts are part of a $1 billion cost-reduction plan that it announced in January.

A company spokesperson said the layoffs include full- and part-time employees. Documents filed with California's Employment Development Department identify 289 layoffs in San Jose and 1,231 in San Diego.

"We concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders," the spokesperson said in a statement. 

Qualcomm (QCOM) declined to say how many people it currently employs or how many people it's laying off outside California. It had 33,800 employees worldwide as of September, according to its website.

Related: China is holding up a $44 billion US tech deal

The chipmaker, whose technology is widely used by smartphone makers, was recently the subject of a $117 billion bid from its rival Broadcom (AVGO).

But Broadcom officially gave up on the attempted takeover last month, days after President Donald Trump blocked the deal over national security concerns. His administration said it was concerned the takeover would hinder Qualcomm's 5G research and development and also delay the deployment of a 5G wireless network in the United States, giving Chinese competitors an advantage.

Qualcomm is facing difficulties related to China at a time of escalating trade tensions between Beijing and Washington.

The Chinese government is holding up Qualcomm's proposed $44 billion takeover of NXP Semiconductors (NXPI), citing antitrust issues. On Thursday, Qualcomm and NXP announced they would extend the deadline for completing the deal to July 25.

Earlier this week, the US government banned Chinese tech company ZTE from buying technology from American companies for seven years. ZTE is a major Qualcomm customer that uses the US firm's chips in its smartphones.

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