Qualcomm Plans Global Job Cuts in Performance-Focused Shift

Qualcomm will reduce its global workforce in what its chief executive described as a “performance-focused reduction,” according to an internal memo reviewed by Reuters. The Qualcomm layoffs will follow the company’s annual employee reviews, with notifications expected to begin in November. The decision was communicated to staff on Monday by CEO Cristiano Amon, who framed the move as part of a broader effort to reshape the company’s workforce around its future priorities.

The cuts add the San Diego-based semiconductor giant to a growing list of technology companies trimming payrolls this year as the industry redirects investment toward artificial intelligence initiatives, according to reports from Mezha and other outlets.

Why the Qualcomm layoffs are happening now

Amon told employees the reduction is part of an effort to build “a stronger performance culture” and address situations where the company “has consistently fallen short of expectations,” according to Reuters, which reviewed the memo. The message framed the cuts as a workforce-quality decision rather than a broad financial restructuring.

“As we have expanded the business, so have the competencies and skills we require. We must have the right people in the right roles so they can perform at their best and the company can continue to succeed,” Amon wrote in the memo, as reported by Reuters via Zot News.

The timing follows the company’s annual review cycle, with the memo indicating that staffing decisions will flow directly from those performance evaluations. Notifications are set to begin in November, according to Reuters.

Scale of the cuts remains unclear

The memo did not say how many jobs would be affected, and Reuters said it could not immediately determine the scale of the reduction. Qualcomm had about 52,000 employees globally as of September last year, most of them full-time, according to Reuters.

Because the reduction is tied to individual performance reviews, the final number will depend on the outcome of evaluations across the company’s divisions rather than a preset target, the reporting suggests. That approach sets the move apart from across-the-board layoffs announced with a fixed headcount figure.

Slump in consumer electronics weighs on results

Qualcomm has been hit this year by a slump in consumer electronics sales, with soaring memory prices weighing on demand in key markets, according to Reuters via Hindu BusinessLine. The pressures come as the company navigates a soft handset cycle while investing in new growth areas.

Investors have taken a cautious view: Qualcomm’s shares have risen just 1.5 percent in 2026, compared with gains of more than 12 percent for the S&P 500 and nearly 60 percent for the Philadelphia Semiconductor Index, according to Reuters.

Below-estimate outlook from July earnings

In its late-July earnings report, Qualcomm forecast quarterly profit below analysts’ estimates and said revenue from Apple products would decline faster than expected, according to Reuters. At the same time, the company signaled that growth in data-center and other non-handset businesses would more than offset the lost revenue by fiscal 2027.

A pivot toward AI data centers

The company expects the majority of its chip sales to come from businesses other than smartphones in fiscal 2027, according to Reuters, as it expands into the fast-growing AI data-center market. That projection underscores how central the shift away from handsets has become to Qualcomm’s strategy.

The move reflects a wider reallocation of resources across the tech industry, where companies are channeling funds into AI infrastructure, chips, and software after years of aggressive hiring during the pandemic-era boom, according to Mezha.

What to know

• Qualcomm will cut jobs globally in a “performance-focused reduction” following its annual employee reviews, with notifications expected to begin in November, according to Reuters.
• CEO Cristiano Amon communicated the decision in an internal memo on Monday, saying the move aims to build “a stronger performance culture” and address areas where the company “has consistently fallen short of expectations.”
• The memo did not disclose how many jobs would be affected; Qualcomm had about 52,000 employees globally as of September last year, according to Reuters.
• The company has been hit by a slump in consumer electronics sales as soaring memory prices weigh on demand; its shares are up just 1.5 percent in 2026, trailing the S&P 500 and the Philadelphia Semiconductor Index.
• Qualcomm expects the majority of its chip sales to come from businesses other than smartphones in fiscal 2027 as it pushes into the AI data-center market, according to Reuters.

Part of a wider tech-industry shift

Qualcomm is far from alone. Technology companies across the industry have been reducing headcount this year while accelerating spending on AI initiatives, a pattern that follows years of aggressive hiring and is now giving way to leaner, more focused workforces, according to Mezha and other outlets.

Whether the performance-based framing will reassure remaining employees and investors remains to be seen. For now, the company has not disclosed which divisions will be most affected, leaving staff awaiting the November notifications for clarity on the scope of the changes, according to Reuters.