To: EepOpp who wrote (26465 ) 4/8/1999 11:07:00 AM From: CDMQ Read Replies (2) | Respond to of 152472
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.