Qualcomm to cut jobs globally in ‘performance-focused’ layoffs, internal memo shows

Qualcomm Inc. QCOM-Q will cut jobs globally in a “performance-focused reduction” following its annual employee reviews, CEO Cristiano Amon told staff in a memo on Monday reviewed by Reuters, with notifications set to begin in November.

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,” Amon said.

The memo did not say how many jobs would be affected, and Reuters could not immediately determine the scale of the cuts.

Qualcomm did not immediately respond to a request for comment. It had about 52,000 employees globally as of September last year, most of them full-time. Its financial year typically ends in late September.

One of the world’s biggest smartphone chip makers, Qualcomm has been hit this year by a slump in consumer electronics sales as soaring memory prices weigh on demand in key markets.

Its shares have risen just 1.5 per cent in 2026, compared with gains of more than 12 per cent for the benchmark S&P 500 and nearly 60 per cent for the Philadelphia Semiconductor Index.

The stock was down about 1 per cent in premarket trading on Tuesday.

In its latest earnings report in late July, Qualcomm forecast quarterly profit below estimates and said revenue from Apple products would decline faster than expected, while signalling that growth in data-centre and other non-handset businesses would more than offset the lost revenue by fiscal 2027.

The company expects the majority of its chip sales to come from businesses other than smartphones in fiscal 2027 as it expands into the fast-growing AI data-centre market.

Amon said in the memo business priorities, organizational needs, skills and expertise would be considered in making the cuts.

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