Exclusive-Qualcomm to cut jobs worldwide in performance-focused layoffs, internal memo shows

Qualcomm to Cut Jobs Worldwide in Performance-Focused Layoffs, CEO Confirms

Qualcomm Announces Global Job Cuts Amid Performance Review

By Aditya Soni and Jaspreet Singh

Layoff Details and CEO Statement

Oct 20 (Reuters) - Qualcomm will cut jobs globally in a "performance-focused reduction" following its annual employee reviews, CEO Cristiano Amon told staff in a memo on Monday reviewed by Reuters, with notifications set to begin in November.

The cuts are part of an effort to build "a stronger performance culture" and address situations where the company "has consistently fallen short of expectations," Amon said.

Scale and Scope of the Layoffs

The memo did not say how many jobs would be affected, and Reuters could not immediately determine the scale of the cuts.

Qualcomm did not immediately respond to a request for comment. It had about 52,000 employees globally as of September last year, most of them full-time. Its financial year typically ends in late September.

Market Performance and Business Outlook

Impact of Market Conditions

One of the world's biggest smartphone chipmakers, Qualcomm has been hit this year by a slump in consumer electronics sales as soaring memory prices weigh on demand in key markets.

Its shares have risen just 1.5% in 2026, compared with gains of more than 12% for the benchmark S&P 500 and nearly 60% for the Philadelphia Semiconductor Index.

The stock was down about 1% in premarket trading on Tuesday.

Future Revenue and Business Strategy

In its latest earnings report in late July, Qualcomm forecast quarterly profit below estimates and said revenue from Apple products would decline faster than expected, while signaling that growth in data-center and other non-handset businesses would more than offset the lost revenue by fiscal 2027.

Expansion into AI and Data-Center Markets

The company expects the majority of its chip sales to come from businesses other than smartphones in fiscal 2027 as it expands into the fast-growing AI data-center market.

Criteria and Rationale for Job Cuts

Amon said in the memo business priorities, organizational needs, skills and expertise would be considered in making the cuts.

"As we have expanded the business, so have the competencies and skills we require," he 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."

(Reporting by Aditya Soni and Jaspreet Singh in Bengaluru; Editing by Anil D'Silva)