Qualcomm may slash 500 jobs in sale

The cellular phone maker may fire or transfer as many as 500 workers after closing the sale of a cellular network equipment unit to Ericsson.

Qualcomm, a maker of cellular phones, may fire or transfer as many as 500 workers after completing the sale of a unit that makes cellular-network equipment to rival Ericsson, according to media reports.

Sweden's Ericsson agreed last month to purchase San Diego-based Qualcomm's unit as part of a broader agreement to share cellular-equipment technology and settle a patent dispute.

Ericsson said it will employ 1,100 to 1,500 workers from Qualcomm's infrastructure division, which currently has more than 1,600 workers, the San Diego Union-Tribune reported, citing company documents.

Qualcomm said in February that it will cut 700 employees, or 6.6 percent of its workforce, to reduce expenses.

Shares of Qualcomm fell 2.4375 to 145.9375 in afternoon trading, while Ericsson shares traded on the Nasdaq national market shed 0.25 to 25.6875.

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