Qualcomm will cut jobs globally following its annual employee reviews, with notifications to affected employees expected to begin in November, according to a memo from CEO Cristiano Amon reviewed by Reuters
on October 20.
In the memo sent to staff on Monday, Amon described the move as a “performance-focused reduction” aimed at building “a stronger performance culture” within the company.
He said the cuts would address situations where employees have “consistently fallen short of expectations,” the report mentioned.
The memo did not specify how many employees would be affected by the layoffs.
The company had about 52,000 employees globally as of September last year, most of them full-time, according to the report. Qualcomm’s financial year typically ends in late September.
Qualcomm Faces Pressure Amid Slump In Consumer Electronics Demand
One of the world’s biggest smartphone chipmakers, Qualcomm has been affected by a slowdown in consumer electronics sales this year, as soaring memory prices weigh on demand in key markets, according to the report.
The company’s share performance has also lagged behind broader market benchmarks.
Qualcomm shares have risen just 1.5 per cent in 2026, compared with gains of more than 12 per cent for the benchmark S&P 500 and nearly 60 per cent for the Philadelphia Semiconductor Index, according to Reuters.
Qualcomm shares were up more than 1 per cent on Tuesday after trading down about 0.5 per cent earlier in the session, the report said.
The planned workforce reduction comes as Qualcomm navigates changes in its business outlook and seeks to expand beyond its traditional dependence on smartphone chips.
Qualcomm Expects Non-Smartphone Businesses To Drive Growth
In its latest earnings report in late July, Qualcomm forecast quarterly profit below analysts’ estimates and said revenue from Apple products would decline faster than expected, Reuters reported.
At the same time, the company indicated that growth in data-centre and other non-handset businesses would more than offset the lost revenue by fiscal 2027.
Qualcomm expects the majority of its chip sales to come from businesses outside smartphones in fiscal 2027 as it expands into the fast-growing artificial intelligence data-centre market, according to Reuters.
The shift highlights the company’s focus on diversifying its revenue sources as demand in its core smartphone market faces pressure.
Qualcomm CEO Says Business Needs And Skills Will Guide Cuts
Amon said the company would consider business priorities, organisational needs, skills and expertise while deciding on the workforce reductions.
“As we have expanded the business, so have the competencies and skills we require,” Amon wrote in the memo, according to Reuters.
He added, “We must have the right people in the right roles so they can perform at their best and the company can continue to succeed.”
The memo indicates that the reductions will be linked to both employee performance and the skills Qualcomm requires as its business evolves. However, it did not provide a breakdown of the roles, departments or locations that could be affected.
