Qualcomm plans global layoffs after performance reviews

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Qualcomm plans global layoffs

Highlights

Qualcomm plans global layoffs starting in November.
The company has not disclosed the number of cuts.
Weak smartphone demand adds pressure to restructure.

According to Reuters, CEO Cristiano Amon outlined the planned reductions in an internal memo distributed Monday. The company intends to assess employee performance alongside changing business priorities, organizational requirements, and the skills needed for its expanding operations.

Qualcomm prepares global workforce reductions

The layoffs will follow Qualcomm's annual employee evaluation process and will affect operations worldwide. Management is seeking to address persistent performance problems while adjusting the workforce to meet the company's changing technical and commercial needs.

The memo did not specify the number of employees facing dismissal or identify the countries and departments most likely to be affected. Qualcomm employed approximately 52,000 people globally as of September 2025, with most positions classified as full-time.

The decision comes as Qualcomm expands beyond its traditional smartphone processor business. That shift requires different engineering capabilities and expertise, particularly as the company develops products for artificial intelligence infrastructure and other computing markets.

Smartphone weakness weighs on chipmaker

Qualcomm has faced difficult conditions in consumer electronics this year, with higher memory prices contributing to weaker demand for smartphones and other devices. The slowdown has complicated its efforts to maintain growth in a market that remains central to its revenue.

In its late-July earnings report, Qualcomm projected quarterly profit below analysts' expectations. It also warned that revenue associated with Apple products would decline faster than previously anticipated, increasing pressure to develop alternative sources of income.

Investors have remained cautious despite strong gains elsewhere in the semiconductor industry. Qualcomm shares had risen approximately 1.5% in 2026, compared with advances exceeding 12% for the S&P 500 and nearly 60% for the Philadelphia Semiconductor Index.

Data center expansion reshapes workforce priorities

Qualcomm expects businesses outside smartphones to account for most of its chip sales by fiscal 2027. Management also anticipates that growth in data centers and other markets will more than compensate for declining Apple-related revenue by that period.

The planned layoffs therefore reflect more than a response to weaker consumer demand. They also indicate how Qualcomm is reallocating resources as it competes for opportunities in AI computing, where technical requirements differ from those of mobile devices.

Earlier, we reported that Qualcomm announces AWS collaboration on AI data center infrastructure.

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