Qualcomm to cut thousands of jobs following performace reviews

Qualcomm has set plans for job cuts across its global workforce in motion, with employees facing the axe expected to be notified from November, according to an internal memo from CEO Cristiano Amon reviewed by Reuters. The chipmaker had about 52,000 employees as of September 2025 but has not said how many jobs it is looking at eliminating from the workforce.

Culture change, not a headcount target

In the memo, CEO Amon stated that the layoffs would help foster what he called “a stronger performance culture” while addressing areas of the company’s business that had continued to fall below expectations.”

Amon added that performance ratings would not be the sole factor in deciding who would be affected, as managers would also assess other things like the company’s business priorities, organizational needs and required expertise for its expansion.

The CEO believes Qualcomm needs to ensure employees have the skills and roles needed to meet the company’s changing needs and support its growth.

Smartphone slump and memory price squeeze

Qualcomm is also facing an increasing challenge in its core smartphone business, with consumer electronics sales cooling sharply and rising memory prices having a negative effect on demand in key markets.

Qualcomm stock has also risen by just 1.5% in 2026, well behind the S&P 500’s gain of over 12% and the Philadelphia Semiconductor Index’s almost 60% increase, Business Standard reported.

The company’s shares remained under pressure ahead of the market open, seeing a 1.16% fall to $171.52 in premarket trading.

Qualcomm bets on data centers over phones

Qualcomm is looking to diversify beyond smartphones, but its latest earnings outlook point directly to the challenges facing that strategy. In late July, the company forecast quarterly profit below analyst expectations and warned that revenue from Apple-related products would fall faster than previously anticipated. The company is betting on growth beyond smartphones to offset the decline in Apple-related revenue.

By fiscal 2027, the company expects its data center, automotive and other businesses to more than compensate for the shortfall, with non-smartphone markets accounting for most of its chip sales.

Qualcomm’s fiscal year typically ends in late September.

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