Revenue Guidance for the next quarter is bad and there is no light at the end of the tunnel! Jana is running the show now as the Qualcomm Board is frightened of a Proxy Fight by Jana which has now been delayed until at least November 2016.
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Aggressively right-sizing the cost structure to deliver profitable growth. Qualcomm is implementing a comprehensive cost reduction action to reduce annual costs from its fiscal 2015 levels of $7.3 billion (adjusted for variable compensation) by approximately $1.1 billion through a series of targeted reductions that will not jeopardize the Company's growth objectives or core technology roadmap. These cost initiatives include reductions in headcount and temporary workforce, streamlining the engineering organization, reducing the number of offices and increasing the mix of resources in lower-cost regions. The Company is also reducing annual share-based compensation grants by approximately $300 million. While these specific cost initiatives are expected to be fully implemented by the end of fiscal year 2016, the Company will continue to examine its cost structure for additional efficiencies that enhance profitability without sacrificing its future growth potential
approximately $300 million reduction in annual share-based compensation grants
Yeah. But not across the board. Not this gem:
increasing the mix of resources in lower-cost regions
Ouch. What are the naysayers saying now?