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Qualcomm plans to lay off 15 percent of its workforce

Qualcomm plans to lay off 15 percent of its workforce

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Qualcomm just announced its earnings for the quarter, and the news isn't good: the company is going to lay off 15 percent of its workforce as part of a major initiative to restructure the company and improve financial performance. And improve it must — Qualcomm's revenue of $5.8 billion for the quarter is down 14 percent from a year ago, while net income dropped a whopping 35 percent to $1.6 billion.

Along with these disappointing results and upcoming layoffs, Qualcomm is also cutting its earnings forecast for the year — after already having done so twice already this year. Specifically, as noted by Recode, Qualcomm is cutting its outlook for the chip side of its business due to lower demand for high-end phones with Qualcomm chips coupled with less than expected sales in China for the devices that do run Qualcomm's chips.

Translated, that means that the combined strength of Apple and Samsung in the smartphone world is putting a choke hold not just on other OEMs, but the companies that produce hardware for those OEMs. We already know that Apple is pulling in nearly all the profit there is to be had in the smartphone business, and that Apple and Samsung continue to battle it out in terms of marketshare, as well. There's just not much else out there for anyone else to grab — if HTC, LG, and others aren't making money, neither is Qualcomm.