Qualcomm plans to reduce its workforce worldwide following its annual employee reviews, according to an internal memo from chief executive Cristiano Amon reviewed by Reuters. The “Reuters report published on 20 October” said notifications to affected employees are expected to begin in November 2026. The company has not disclosed how many positions will be eliminated, and Reuters said it could not immediately determine the scale of the planned cuts. Qualcomm, one of the world’s largest smartphone chipmakers, had approximately 52,000 employees globally as of September 2025, most of them full-time, according to Reuters.
Company Cites Performance and Organisational Needs
In the memo, Amon described the planned reductions as a “performance-focused reduction” intended to build a stronger performance culture and address cases where employees had consistently fallen short of expectations.
He said decisions would take account of business priorities, organisational requirements, and the skills and expertise the company needs.
The memo also indicated that Qualcomm’s requirements have changed as the business has expanded, making it necessary to ensure employees are in roles that match the company’s needs. The company has not publicly provided a detailed breakdown of the departments, locations, or job categories that will be affected.
Smartphone Market Faces Pressure
The planned cuts come as Qualcomm faces challenges in the consumer electronics market. Reuters reported that weaker demand for consumer electronics and rising memory prices have weighed on the industry this year. These pressures have created a more difficult environment for companies that depend heavily on smartphone-related sales. In its July earnings report, Qualcomm forecast quarterly profit below analysts’ estimates and said revenue from Apple-related products was expected to decline faster than previously anticipated, Reuters reported.
Those developments form part of the business context surrounding the restructuring. However, Qualcomm’s internal memo framed the job reductions around performance and organisational needs rather than identifying a single financial factor as the cause.
Qualcomm Seeks Growth Beyond Smartphones
Qualcomm is also working to expand its business beyond traditional smartphone chips, including through opportunities in artificial intelligence and data-centre technology. Reuters reported that the company expects growth in data-centre and other non-handset businesses to help offset declining revenue from Apple-related products by fiscal 2027.
Amon said the company needed the right mix of people and expertise to support its changing priorities.
The shift reflects a broader effort by technology companies to develop products and services in faster-growing markets while managing costs in established business areas. Whether those investments can offset pressure in the smartphone market will depend on demand, competition and Qualcomm’s ability to execute its plans.
Employees Await Details of the Cuts
Qualcomm has yet to disclose the total number of employees who will lose their jobs or provide a complete timeline for the reductions beyond saying that notifications are expected to begin in November.
The announcement therefore confirms a global workforce reduction but does not establish how many positions will be affected or how the cuts will be distributed across the company’s operations.
Further details are expected to emerge as employees receive notifications and Qualcomm provides additional information about its organizational plans.
