Qualcomm will begin rolling out job cuts across its global workforce starting November 2026, with the reductions reportedly tied to employee performance, according to a memo from Chief Executive Officer Cristiano Amon to staff on Monday, 20 October. The company, which employs around 52,000 people globally, has not disclosed how many positions will be affected.

What the CEO's Memo Said

In his internal communication, Amon cited the need to build a 'stronger performance culture' and address cases where employees have 'consistently fallen short of expectations.' He emphasised that the reductions would be guided by business priorities, organisational requirements, and individual skills.

'As we have expanded the business, so have the competencies and skills we require,' Amon 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,' he added.

Business Pressures Behind the Move

Qualcomm is navigating a challenging business environment marked by weakening demand for electronic products, partly driven by soaring memory prices. In its July earnings report, the chipmaker projected quarterly profit below analysts' estimates and cautioned that revenue from its Apple-related business would decline faster than previously anticipated.

This comes as the company accelerates its push to diversify revenue beyond smartphones — a segment that has historically dominated its earnings. The stock slipped 1.16% in pre-market trading to $171.52 on the Nasdaq following the reports.

The Pivot to AI, Automotive and Data Centres

Qualcomm has been ramping up investments in high-growth verticals including artificial intelligence-powered data centres, automotive chips, and connected-device technologies. The company has publicly stated it expects the majority of its chip revenue to originate from businesses outside the smartphone market by fiscal 2027.

Notably, Qualcomm expects growing contributions from its data centre, automotive, and other non-handset segments to more than offset declining handset revenues by fiscal 2027. The planned workforce restructuring appears aimed at aligning human capital with this strategic reorientation.

Scale and Context of the Layoffs

As of September 2025, Qualcomm employed roughly 52,000 people globally, the majority on full-time contracts. The November cuts mark the latest in a series of workforce adjustments across the global semiconductor industry as chipmakers recalibrate for a post-smartphone-boom era. This is not the first time Qualcomm has undertaken significant headcount reductions — the company cut hundreds of roles in prior years amid licensing disputes and handset market slowdowns.

What Comes Next

The scope of the cuts and specific teams or geographies affected remain undisclosed. Investors and analysts will closely watch Qualcomm's next earnings call for clearer guidance on headcount targets, severance costs, and the pace of its non-smartphone revenue ramp.