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Q’comm Layoffs Spawned by Letter

Does activist investor understand SoC's, R&D?
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Design  & Manufactured in US
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Re: Maybe not
Design & Manufactured in US   11/5/2015 6:24:59 PM
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I think, the company has grown so big, management does not have any pulse on cost.    It is time to split the company, and be productive on both ends (innovation for new technology and execution for operating income).    Unless there is a big change, simply cutting the people, and/or repurchase of the stocks is not going to improve the stituation.  

 

truekop
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Re: Qualcomm's own FAB...
truekop   7/27/2015 4:46:02 PM
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No FAB no differentiation as one of the earlier commentator mentioned it was "armdraggon" and not "snapdragon". In fact ARM architecture and its availability to all has really levelled the playing field , TI had same issues and their wireless division closed down. How do you differentiate ? Which is why process technology is the key, i suppose wall street will never understand this...

rick merritt
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Re: Qualcomm's own FAB...
rick merritt   7/27/2015 3:27:46 PM
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The old discussion of chip designers needing a fab or not is off the mark. These days a leading edge fab csts ~$10B.

The real issue is how do dominant companies survive when enevitably trends shift...and can they do it without big layoffs?

rick merritt
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Re: Maybe not
rick merritt   7/27/2015 3:25:34 PM
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@joepaiii I don't believe there was a 1:1 cause and effect of letter:layoffs. However the letter is clearly one example of strong pressure from an outside investor that helped pull Q in that direction.

I guess this also means the end of those extravagant street parties Q used to host in San Diego ;-)

systemBuilder29
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Re: Maybe not
systemBuilder29   7/26/2015 3:26:01 AM
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@realjjj - You are correct, it's not just a single mis-step at Qualcomm.  There is not a sustainable advantage in CPU design - why did they get into that market?  Note to Qualcomm : CPU companies ALL HAVE THEIR OWN FOUNDRIES WHERE IS YOURS?

Snapdragon 810 is not a Qualcomm part.  It's something slapped together quickly using ARM cores because Qualcomm bungled its 64-bit roadmap and allowed Apple to catch them with their pants down.  Snapdragon 810 is actually an Armdragon 810. 

Good people have been leaving for a couple of years, they are starting to see the writing on the wall as there is too much waste internally and this personified by giant science fair projects that staff up to 100 people and then staff right down when people realize they are stupid.  This has been going on for many years but now with MediaTek entering the 4G market and smaller handset makers (and Samsung) under pressure from iPhone 6/6S, these wasteful practices are draining valuable resources that are needed to stay competitive.  A failure to invest in CPU 64-bit roadmap is only their first major mistake in a CPU business where they are arguably, beginners.

joepaiii
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Re: Maybe not
joepaiii   7/26/2015 2:01:06 AM
Completely agree with this.  Can't believe this article was even written or that anyone entertains the idea that a simple letter was the catalyst for these cost reductions.

realjjj
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Re: Maybe not
realjjj   7/25/2015 1:59:41 PM
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There  are more examples actually. When Nvidia went quad core, when Mediatek went 8 cores ,when the low end volumes exploded, Qualcomm was always caught off guard and unprepared. Too many times they found themselves behind the curve and that's not on the engineers that are just executing on a roadmap. Sure , Qualcomm does (or did?) a great job usually but there are too many problems and maybe a certain amount of arrogance.

zeeglen
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Re: Jana's posturing
zeeglen   7/24/2015 11:56:44 PM
@resistion It suggests Qualcomm doesn't have a good hold on its own course of action.

Yes, the non-productive money-grabbers are taking over.

resistion
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Jana's posturing
resistion   7/24/2015 10:01:49 PM
I think the timing of Jana's letter is alarming. It suggests Qualcomm doesn't have a good hold on its own course of action. Maybe not true but why let it look that way. That is a problem with large shareholders who are not part of the company. The majority should be with the company.

resistion
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Re: My empathies to those getting laid-off (first timers in particular)
resistion   7/24/2015 9:55:53 PM
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Was that supposed to be helpful?

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