A report from The Information claims that Qualcomm is going to layoff thousands of its employees at its Q3 FY15 earnings conference scheduled for July 22.

The company is expected to cut around 4,000 jobs in a bid to reduce its costs. This move likely stems from the fact that the chip maker’s revenue for Q3 will be lower than it had even anticipated for.

The failure of the Snapdragon 810 in the high-end segment this year has hit Qualcomm negatively this year. The overheating issues of the chipset led the company to lose a major client like Samsung that ended up using its own Exynos chipset on the Galaxy S6 and Galaxy S6 edge. Apart from the Snapdragon 810 failure, Qualcomm is also facing stiff competition in the low to mid-range segment from MediaTek, whose chipsets are now becoming a commonplace in handsets from most Chinese OEMs.

A revenue dip in Q3 FY15 for Qualcomm does not spell any long term trouble for the company since its other businesses — modem and patents — are doing just fine. It is likely that the company will bounce back with the release of the Snapdragon 820 chipset later this year, which is expected to use its own custom ARM cores for better performance.