TAIPEI (Taiwan News) — Qualcomm Taiwan is reportedly going to lay off 200 employees in October, with a pay freeze and bonus payout cut for the remaining workers this year.

In June, the world's leading 5G modem chip and smartphone chip designer downsized its San Diego headquarters as demand for smartphones and their components has weakened worldwide. Earlier this month, the company reported fiscal 2023 third quarter revenue slumped 23% to US$8.44 billion (NT$269.16 billion), short of forecasts of US$8.5 billion, while handset chip sales declined 25%.

The chip designer's office in Taiwan will also be affected by the company's cost-cutting efforts amid the downturn, according to Economic Daily.

A post on the PTT message board indicated that the company was going to reduce headcount by 200 in October. Product engineers, test engineers, and a few senior staff engineers will be affected by the layoffs.

Meanwhile, those staying with the company will either see their bonus cut or a salary freeze this year. One source told Economic Daily that the company currently has 1,400 workers.

In March, Qualcomm inaugurated an advanced engineering and testing center in Hsinchu in a bid to expand its service and investment in Taiwan.

The company has yet to respond to the reported layoffs at the time of publication.