Qualcomm decimates staff

tumblr_inline_mr4fuieOKe1qz4rgpChipmaker Qualcomm has decided that the best way for it to resolve all its problems is to use the Ancient Roman practice of decimation.

In the good old days, if a Roman legion was not performing properly the commander would pick ten percent of them by lot and beat them to death as a warning to the others. The practice was abandoned when the Roman legions could not get the staff, and Qualcomm will be less lethal in its methods, but the result will be the same.

The chipmaker is expected to announce the job cuts when it releases its quarterly results on tomorrow after reporting a 46 percent drop in second-quarter profit in April.

It is facing increasing competition from Taiwan’s MediaTek and a handful of small Chinese companies that specialize in making chips for low-priced phones.

Qualcomm could shift more research and development activities to low-cost countries such as India for further cost savings.

The first site to suggest this was going to happen was Fudzilla who suggested it last week. It claimed 4,000 and it seems that 3,000 is closer to the mark.

Qualcomm forecast third-quarter revenue and profit below analysts’ expectations in April, saying the loss of a key customer and delays in product launches by some smartphone makers will hurt sales of its flagship Snapdragon chips.

Qualcomm has also been under pressure from hedge fund Jana Partners to spin off its chip business from its highly profitable patent-licensing business.

In addition, EU antitrust regulators are investigating whether Qualcomm uses illegal tactics to shut out rivals, six years after slapping a record $1.09 billion fine on Intel for something similar.