Qualcomm Beats Earnings Estimates, Will Cut 15% of Workforce

American semiconductor company, Qualcomm (QCOM), reported earnings after the market close that beat expectations with news that sent the company’s shares higher in after-hours trading. The San Diego-based company reported earnings of $0.99 a share on sales of $5.8 billion dollars for the company’s third quarter of 2015. Qualcomm beat the consensus estimates from Reuters which came to $0.95 on sales of $5.8 billion. Earnings of $0.99 a share were $0.45 lower than the $1.44 a share earned in the same period last year. In the release, the company said that it will be cutting 15 percent of its current workforce as part of their Strategic Realignment Plan. As part of its restructuring plan, Qualcomm will add two board members chosen by activist investor hedge fund Jana Partners, which has a $2 billion stake in the semiconductor manufacturer, pressured Qualcomm management to grow shareholder value and potentially even break up the company. The potential split would separate the chip production business from its patent licensing unit. Shares of Qualcomm are trading down nearly 14 percent from where they opened at the beginning of the year.