Qualcomm Plans Global Job Cuts After Reviews
The chipmaker's chief executive told employees in a memo that the reductions follow annual performance reviews, without specifying how many roles will go.
Updated on Nov. 4, 2026 in Public Companies
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Qualcomm plans workforce reductions worldwide following its annual employee performance reviews, according to a memo from CEO Cristiano Amon reviewed by Reuters. The memo did not say how many positions would be eliminated.
Why it matters
The cuts come as Qualcomm's shares have gained only about 1.5% in 2026, while the S&P 500 has risen more than 12% and the Philadelphia Semiconductor Index nearly 60%. The company is also contending with a faster-than-expected decline in Apple-related revenue.
Qualcomm had roughly 52,000 employees globally as of September 2025, and its shares have gained around 1.5% in 2026 compared with more than 12% for the S&P 500 and nearly 60% for the Philadelphia Semiconductor Index. The memo did not state how many of those roles will be cut.
The players
Qualcomm
Qualcomm is a San Diego-based semiconductor company best known for designing the Snapdragon chips used in many smartphones and a growing range of other devices.
Cristiano Amon
Cristiano Amon is Qualcomm's chief executive officer, who has been steering the company's push beyond its smartphone chip business into areas such as data centres and automotive.
The details
CEO Cristiano Amon sent the memo to employees on Monday describing the reductions as aimed at building a stronger performance culture and addressing areas where the company has consistently fallen short of expectations. Qualcomm forecast quarterly profit below analysts' expectations in its July earnings report and indicated that revenue from Apple-related products would decline faster than previously anticipated.
Timeline
July: Qualcomm's latest earnings report forecast profit below expectations.
Monday: Amon sent the memo to employees announcing the reductions.
November: Notifications to affected employees are expected to begin.
Fiscal 2027: The company expects growth in data centres and other non-handset businesses to offset the smartphone decline.
Market Landscape
Qualcomm's workforce reduction comes as it attempts to offset a shrinking smartphone chip business with growth in data centres and other non-handset markets, a shift it expects to make most of its chip sales outside smartphones by fiscal 2027. The company's share performance trailing the broader semiconductor index highlights the competitive pressure it faces in that transition.
For customers and investors, the cuts signal that Qualcomm is restructuring around its non-smartphone businesses, which could shape product focus and future chip availability. Shareholders should watch whether the company's data centre growth offsets the Apple-related revenue decline as projected for fiscal 2027.
The takeaway
Workforce cuts at a major chipmaker often reflect a deliberate pivot rather than a one-time correction, and Qualcomm's shift toward data centres and other non-handset markets will be the test of whether the restructuring pays off. Readers tracking the company should follow its fiscal 2027 results for evidence that the new growth areas are replacing lost smartphone revenue.
What happens next
Employees affected by the reductions are expected to be notified beginning in November.
Further reading
For more on how publicly traded firms like Qualcomm are navigating shifting markets, see Public Companies.
Source note: This article includes information reported by ETHRWorld.
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