Chip maker Qualcomm is slashing 1,500 jobs at a number of its Californian premises with reports saying this is a move to reduce costs by US$1bn.

The job cuts were noted in a document filing to California state on April 18.

According to Reuters, Qualcomm has roughly 33,800 employees as of September 24 last year. The company will be cutting 1,231 jobs from its San Diego office and 269 jobs from its San Jose and Santa Clara.

A spokesperson for the company says Qualcomm considered cost reductions without cutting jobs but in the end layoffs would help the company’s ‘long term growth and success’.

Currently, its shares on the NYSE are at US$52.72 down 4.82 per cent.