Qualcomm to Cut Jobs Worldwide as Performance-Focused Layoffs Begin in November
Key Takeaways
- •Qualcomm will begin notifying employees of job cuts across its global workforce starting in November, but has not disclosed how many positions will be eliminated.
- •CEO Cristiano Amon framed the restructuring as performance-focused, with managers weighing business priorities, organizational needs, and required expertise alongside performance ratings rather than applying a companywide quota.
- •Qualcomm is facing headwinds in its core smartphone business from cooling consumer electronics demand and rising memory prices, and its stock has gained only 1.5% in 2026 compared with nearly 60% for the Philadelphia Semiconductor Index.
- •In late July, the company forecast quarterly profit below analyst expectations and warned that revenue from Apple-related products would decline faster than previously anticipated.
- •By fiscal 2027, Qualcomm expects its data center, automotive, and other non-smartphone businesses to more than compensate for the Apple-related shortfall and account for the majority of its chip sales.
Qualcomm has set in motion plans to cut jobs across its global workforce, with employees affected by the reductions expected to be notified starting in November, according to an internal memo from Chief Executive Cristiano Amon reviewed by Reuters. The chipmaker employed roughly 52,000 people as of September 2025, but the company has not disclosed how many positions it intends to eliminate.
The company has framed the reductions as a performance-focused restructuring rather than a fixed headcount target, leaving the ultimate scope of the layoffs undefined for now.
Culture change, not a headcount target
In the memo,mon said the layoffs would help foster what he called "a stronger performance culture" while addressing areas of the company's business that have continued to fall below expectations.
He added that performance ratings would not be the sole factor in determining who is affected. Managers will also assess considerations such as the company's business priorities, organizational needs, and the expertise required to support its expansion.
According to the chief executive, Qualcomm needs to ensure employees have the skills and roles needed to meet the company's changing requirements and support its growth.
In practice, that leaves the depth of the cuts to unit-level decisions rather than a single companywide quota.
Smartphone slump and memory price squeeze
Qualcomm is also confronting mounting challenges in its core smartphone business, with consumer electronics sales cooling sharply and rising memory prices weighing on demand in key markets.
The company's stock has gained just 1.5% in 2026, well behind the S&P 500's advance of more than 12% and the Philadelphia Semiconductor Index's nearly 60% climb, according to Business Standard. That gap with the broader chip sector underscores how far Qualcomm has trailed its industry this year.
Shares remained under pressure ahead of the market open, falling 1.16% to $171.52 in premarket trading.
Qualcomm bets on data centers over phones
Qualcomm is working to diversify beyond smartphones, but its latest earnings outlook highlights the difficulties facing that strategy. In late July, the company forecast quarterly profit below analyst expectations and warned that revenue from Apple-related products would decline faster than previously anticipated. The company is counting on growth outside the smartphone market to offset the drop in Apple-related revenue.
By fiscal 2027, Qualcomm expects its data center, automotive, and other businesses to more than compensate for the shortfall, with non-smartphone markets accounting for the majority of its chip sales. The company's fiscal year typically ends in late September. In the nearer term, the November notifications will provide the first concrete indication of the restructuring's scale.
