Qualcomm Announces Global Job Cuts Following Annual Performance Reviews

Qualcomm, one of the world's largest smartphone chipmakers, is set to cut jobs globally as part of a performance-focused reduction following its annual employee reviews. According to an internal memo sent by CEO Cristiano Amon to staff, employee notifications for the layoffs will begin in November.

Amon stated in the memo that the cuts are part of an effort to build a stronger performance culture and address situations where the company has consistently fallen short of expectations. The communication did not specify the exact number of jobs that would be affected, and the total scale of the reductions could not immediately be determined. Qualcomm had approximately 52,000 employees globally as of September last year, primarily consisting of full-time staff.

The company has faced headwinds this year due to a slump in consumer electronics sales, driven by soaring memory prices that have weighed on demand in key markets. Qualcomm's shares have risen 1.5% in 2026, trailing behind gains of more than 12% for the benchmark S&P 500 and nearly 60% for the Philadelphia Semiconductor Index.

During its latest earnings report in late July, Qualcomm forecast quarterly profit below analyst estimates. The company also indicated that revenue from Apple products would decline faster than expected, though it signaled that growth in data-center and other non-handset businesses would offset the lost revenue by fiscal 2027.

Qualcomm expects the majority of its chip sales to originate from businesses outside of smartphones by fiscal 2027 as it continues its expansion into the AI data-center market. Addressing the organizational restructuring, Amon noted that business priorities, organizational needs, required skills, and expertise will be taken into account during the evaluation process.

"As we have expanded the business, so have the competencies and skills we require," Amon wrote in the memo. "We must have the right people in the right roles so they can perform at their best and the company can continue to succeed."

"Qualcomm's decision to restructure through performance-focused layoffs reflects the broader pressures facing hardware and semiconductor companies amid shifting consumer demand and rising input costs. As tech giants pivot their strategic focus toward emerging sectors like AI and data centers, workforce realignment often follows to match evolving business priorities. For leadership teams across the tech ecosystem, aligning human capital with long-term technological transitions remains a critical challenge during periods of macroeconomic adjustment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes