Qualcomm is reportedly planning to lay off several thousand employees and is even consider spinning off its processor business, according to several reports. The news comes a day ahead of the company's third-quarter earnings report and follows a year of ups and downs for the California chipmaker.

According to The Wall Street Journal, Qualcomm will push a comprehensive review of the business with an eye toward breaking it into separate companies. The firm may also announce plans to return more money to its shareholders. Finally, we may see some of its board members moved around in an effort to restructure power at the top.

Meanwhile, a separate report from The Information claims Qualcomm is gearing up to fire thousands of workers in an effort to increase profits. Revenue has apparently been slumping due to competition from foreign chipmakers. Plummeting smartphone prices likely haven't helped either.

Qualcomm has had a pretty rough year. Its flagship Snapdragon 810 chip was plagued by reports of overheating issues, Samsung opted for its own Exynos chip instead of a Qualcomm chip, and Qualcomm was ordered to pay $975 million in February for violating antimonopoly laws in China. It might be able to turn the tides later this year with the Snapdragon 820, which should help secure the high-end smartphone market for at least another year.