More signs the Qualcomm Centriq is in trouble

Last month there were rumors that Qualcomm was looking to exit the data center business and abandon the Centriq processor, an ARM-based 48-core chip designed to take on Intel in the enterprise server market. The news seemed surprising, given Qualcomm had put years of work into the chip and had only just launched it a few months earlier.

Now Bloomberg adds further fuel to the fire with a report that the company is preparing to lay off almost 280 employees, and most of them are in the data center group. Bloomberg got wind of the layoffs due to filings with the state governments in North Carolina and California, which require advanced notice of significant layoffs.

The total number of cuts, including those not covered by such notices, will represent a third to half of the server-chip unit’s employees, according to a person familiar with the process. These layoffs come on top of previously announced layoffs of about 1,500 workers across the company.

Qualcomm can’t compete with Intel

Bloomberg said Qualcomm evaluated future opportunities for the data center business before deciding that it would take too long to gain ground on Intel, which owns 99 percent of the enterprise server market, according to Mercury Research. Hell, I could have told them that.

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