Chip-maker Qualcomm has started layoffs, impacting both full-time and temporary employees, as “workforce reduction is needed to support long-term growth and success”.

According to reports, Qualcomm may eliminate 1,500 jobs in California alone.

The reports came as Qualcomm struggles to close its purchase of NXP while concurrently meeting its goal to cut costs by $1 billion, reports Fierce Wireless.

“As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce. A workforce reduction, such as this one, affects not only those employees who are part of the reduction, but their families, co-workers and the community,” the chip giant said in a statement.

The company offered affected employees supportive severance packages to reduce the impact of the transition on them.

“We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders,” the company added.

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Earlier this month, Qualcomm said that at the request of the Ministry of Commerce in China, it refiled its application to acquire NXP.

In conjunction with the refiling, NXP and Qualcomm agreed, among other things, to extend the end date of their purchase agreement from April 25, 2018, to July 25, 2018.

China is the only country that hasn’t signed off on Qualcomm’s purchase of NXP.

Qualcomm had walked away from a $44 billion deal to buy NXP Semiconductors after failing to secure Chinese regulatory approval.

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Meanwhile, South Korea’s Supreme Court this month finalized a ruling in favor of the national antitrust regulator’s record fine of 1 trillion won ($760.8 million) imposed in 2016 on US chipmaker Qualcomm for unfair business practices.

The fine was imposed by the Fair Trade Commission (FTC), which concluded in December 2016 that the San Diego-based company and its two affiliates breached South Korea’s competition law by refusing to offer licenses to chipset manufacturers and demanding high fees for patents used by smartphone makers.