Ericsson deal affects Qualcomm job
picture
By Mike Drummond
STAFF WRITER
April 8, 1999
Qualcomm could be forced to transfer or lay off more than 100 employees once its deal
with its Swedish rival, Ericsson, is consummated, an internal company document
indicates.
Ericsson is developing a "broad and comprehensive" plan for assimilating Qualcomm's
infrastructure division, which Ericsson purchased as part of a royalties and patent
settlement late last month.
The joint posting by Qualcomm and Ericsson, on Qualcomm's intranet communications
network, said employees would be presented the plan this week. That plan had not been
unveiled as of yesterday.
Ericsson anticipates it will need 1,100 to 1,500 employees from Qualcomm's
infrastructure division, according to the posting.
However, Ericsson officials have said there are more than 1,600 employees in that
business unit, meaning Qualcomm will have to absorb 100 to 500 workers or again chop
its payroll.
Qualcomm laid off 700 mostly full-time employees in February in the largest round of
layoffs in the company's 14-year history.
"If an employee is not selected by Ericsson, Qualcomm will work with employees to
identify positions for them within Qualcomm," the document stated. "If appropriate
positions cannot be identified, supportive severance packages will be offered."
Ericsson officials were unavailable for comment.
Ake Persson, the Ericsson vice president who will lead the local infrastructure division,
told the San Diego Union-Tribune last week that, "We have no plans to make any
reductions."
Asked if Qualcomm can absorb as many as 500 employees, a spokeswoman said that it's
"too early in the process to tell at this point."
Qualcomm's Web site does have job postings for engineers, accountants, financial
analysts and database administrators and developers.
Separately, both companies have agreed not to poach from each other's work force for
three years, but an employee who quits either company can join the rival after six
months, according to the agreement.
If employees refuse offers by Ericsson, those will be considered voluntary resignations.
Qualcomm and Ericsson ended a long-standing patent dispute March 25. Qualcomm will
receive royalties on all sales of existing and future versions of code division multiple
access, or CDMA, wireless phone technology that Qualcomm commercialized in 1989.
Ericsson, which built its $22.3 billion fortune on an earlier technology known as global
system for mobile communications, or GSM, also will receive a portion of royalties
based on sales of its own breed of CDMA.
Ericsson also agreed to buy Qualcomm's money-losing infrastructure division, which
makes base stations. A station is a crucial and expensive closet-sized equipment that
links mobile phones with central communications grids.
Copyright 1999 Union-Tribune Publishing Co. |
