Qualcomm plans global job cuts as performance review drives restructuring

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Qualcomm global job cuts

Highlights

Qualcomm announces a global 'performance-focused reduction' following its annual review, but does not disclose the number of affected jobs.
Qualcomm shares are up about 1.5% in 2026, lagging the S&P 500's 12%+ and Philadelphia Semiconductor Index's nearly 60% gains amid weak chip demand.
Qualcomm projects quarterly profit below estimates with faster-than-expected Apple revenue decline, but expects non-handset chip revenue to lead by fiscal 2027.

Layoff plan tied to annual reviews

As first reported by Reuters, Chief Executive Cristiano Amon tells employees in an internal memo reviewed on Monday that Qualcomm is launching a global “performance-focused reduction” after its yearly review process.

Amon says the cuts are intended to build “a stronger performance culture” and address cases where the company “has consistently fallen short of expectations.” The memo says business priorities, organizational needs, skills and expertise will be considered when deciding which roles are affected.

The company does not say how many jobs are included in the reduction, and the scale of the move remains unclear. Qualcomm does not immediately respond to a request for comment.

Chip market pressure and business shift

Qualcomm, one of the world's largest smartphone chipmakers, is under pressure this year from weaker consumer electronics sales as higher memory prices weigh on demand in key markets. The company had about 52,000 employees globally as of September last year, most of them full-time.

Its shares are up about 1.5% in 2026, trailing gains of more than 12% for the S&P 500 and nearly 60% for the Philadelphia Semiconductor Index. In its late-July earnings report, Qualcomm forecasts quarterly profit below estimates and says revenue from Apple products will decline faster than expected.

At the same time, the company signals that growth in data-center and other non-handset businesses will more than offset that lost revenue by fiscal 2027. Qualcomm also expects most of its chip sales to come from businesses other than smartphones in fiscal 2027 as it expands into the AI data-center market.

Our earlier article on the U.S. AI data-center buildout highlighted how soaring financing costs, construction delays, and power constraints are starting to challenge the industry’s aggressive expansion plans. We noted that a significant share of announced projects has been delayed or deemed unrealistic, while grid limitations and local pushback add further uncertainty about how quickly computing capacity can scale.

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