Qualcomm announced Wednesday that it would cut its workforce by about 15 percent contributing to a total of $1.4 billion in cost reductions. It also announced changes to its board and executive compensation. (Tweet This)
The San Diego-based chipmaker said it would be reviewing structural alternatives to splitting the company. Reports surfaced earlier this week that Qualcomm could spin off its less profitable chip business, according to sources cited by The Wall Street Journal.
Shares were up as high as 2 percent in extended trading before reversing to a drop of nearly 2.5 percent.
Qualcomm also delivered quarterly earnings Wednesday that beat analysts' expectations, although revenue came in at a slight miss.
The technology firm posted fiscal third-quarter earnings of 99 cents per share on $5.83 billion in revenue. Wall Street had expected 95 cents a share on revenue of $5.85 billion, according to consensus estimates from Thomson Reuters.
"We are making fundamental changes to position Qualcomm for improved execution, financial and operating performance," said CEO Steve Mollenkopf in a press release. "We are right-sizing our cost structure and focusing our investments around the highest return opportunities while reaffirming our intent to return significant capital to stockholders and refreshing our board of directors."
Qualcomm has reduced the outlook for its semiconductor business for the fiscal fourth quarter, driven by reduced demand and lower sell through in China.