Qualcomm Targets Underperformers in Global Layoffs: Job-Cut Notices to Begin in Nov

Qualcomm will begin notifying employees of planned job cuts in November following its annual performance reviews, according to an internal memo from CEO Cristiano Amon reviewed by Reuters. Qualcomm has not disclosed how many positions will be eliminated or which teams and regions will be affected.

Amon described the planned reductions as a “performance-focused reduction” intended to build “a stronger performance culture.” He said Qualcomm needed to address areas where performance had consistently fallen short of expectations.

The memo also indicated that business priorities, organizational requirements, and employee skills and expertise would be considered when determining the cuts.

Qualcomm Layoffs Come Amid Pressure on Smartphone Business

The planned job cuts come as Qualcomm faces challenges in the consumer electronics market. Rising memory prices have put pressure on demand for smartphones and other electronic devices, affecting a key market for the semiconductor company.

Qualcomm is one of the world’s largest suppliers of chips used in smartphones, making changes in consumer demand particularly important to Qualcomm’s business outlook.

Qualcomm had approximately 52,000 employees worldwide as of September 2025, most of them full-time, according to Reuters. However, that figure does not indicate how many workers could be affected by the planned reductions.

Qualcomm has also faced pressure on its financial performance. Its shares had gained approximately 1.5% in 2026 as of the Oct. 20 report, trailing the S&P 500’s increase of more than 12% and the Philadelphia Semiconductor Index’s gain of nearly 60%. The stock was down about 0.5% in trading on Tuesday, Reuters reported.

In its earnings report in July, Qualcomm forecast quarterly profit below analysts’ estimates and warned that revenue from Apple-related products would decline faster than expected. Qualcomm is seeking to offset pressure in its handset business by developing other revenue sources.

AI Data Centers Become Part of Qualcomm’s Growth Strategy

Qualcomm is increasingly looking beyond smartphones as it seeks to diversify its business. The company expects the majority of its chip sales to come from non-smartphone markets in fiscal 2027, with AI data centers among the areas it is targeting for growth.

That transition could change the skills and expertise Qualcomm requires as it expands into new markets. In his memo, Amon said Qualcomm’s evolving business had also changed the competencies needed across its workforce.

“As we have expanded the business, so have the competencies and skills we require,” Amon wrote, according to Reuters. He added that Qualcomm needed the right people in the right roles to support its performance and continued success.

The announcement does not establish that the AI expansion itself is causing the layoffs. Instead, the memo places the workforce reduction within an effort to align Qualcomm’s organizational needs with its business priorities.