Qualcomm, one of the world’s largest smartphone chipmakers, is preparing to reduce its global workforce following its annual employee performance reviews. The company plans to begin notifying affected employees in November 2026, according to an internal memo from chief executive Cristiano Amon. The announcement comes as the semiconductor giant faces slowing consumer electronics demand and accelerates its efforts to expand beyond smartphones.
Global Layoffs Planned, but Job Numbers Remain Unknown
Amon described the planned job cuts as a “performance-focused reduction” intended to build a stronger performance culture and address areas where employees have consistently fallen short of expectations.
The memo did not disclose how many employees would lose their jobs, and the exact scale of the restructuring remains unclear. Qualcomm had approximately 52,000 employees worldwide as of September 2025, most of whom were full-time staff.
The company said decisions would take into account business priorities, organisational requirements, and the skills and expertise needed for its future operations.
Although the announcement emphasises performance reviews, the broader business environment also presents challenges for Qualcomm as it seeks to manage costs and redirect resources towards emerging growth opportunities.
Smartphone Market Weakness Adds to Pressure
Qualcomm is a major supplier of processors and connectivity chips for smartphones. However, weaker consumer electronics demand and rising memory prices have put pressure on the market.
In its July 2026 earnings report, Qualcomm forecast quarterly profits below market expectations and warned that revenue from Apple-related products would decline faster than previously anticipated.
The company’s share performance has also lagged behind the broader technology sector. Qualcomm shares had gained only around 1.5% in 2026 at the time of the report, compared with gains of more than 12% for the S&P 500 and nearly 60% for the Philadelphia Semiconductor Index.
These pressures have increased the importance of improving operational efficiency while developing new sources of revenue.
Qualcomm Bets on AI Data Centres and Other Markets
Qualcomm is attempting to reduce its dependence on smartphone chips by expanding into automotive technology, connected devices and artificial intelligence infrastructure.
The company expects businesses outside smartphones to account for the majority of its chip sales in fiscal 2027. AI data centres represent a particularly important opportunity as demand grows for computing infrastructure capable of supporting advanced AI workloads.
If these businesses expand as expected, they could help offset declining revenue from some traditional smartphone customers. However, Qualcomm will need to translate its investments into sustained commercial growth.
The workforce restructuring may reflect an effort to align employee skills and organisational resources with these changing priorities, although the company has not provided a detailed breakdown of the roles or departments likely to be affected.
What the Layoffs Mean for Employees
Qualcomm employees worldwide could receive notifications beginning in November. Until the company provides further details, the number of affected workers, the locations involved and the departments targeted remain unknown.
The announcement also highlights a broader trend in the technology industry: companies are reassessing workforce requirements while shifting investments towards AI, data centres and other emerging markets.
Summary
Qualcomm plans global job cuts following its annual performance reviews, with notifications expected to begin in November 2026. CEO Cristiano Amon said the move aims to strengthen performance standards and align employees’ skills with business needs. The company has not disclosed the number of jobs affected. The announcement comes amid weakness in smartphone demand and a strategic push into AI data centres and other non-handset businesses.
