Qualcomm is preparing to execute a worldwide reduction in its workforce following its annual employee reviews. Chief Executive Officer Cristiano Amon announced the upcoming cuts in an internal memorandum sent to staff on Monday, explaining that the move is designed to cultivate a stronger performance culture and address areas where the company has persistently failed to meet expectations.
Notification letters regarding the downsizing are scheduled to begin going out to affected employees in November. The internal memo did not disclose the precise number of positions that will be eliminated, and the exact scale of the global reductions could not be immediately determined. Qualcomm declined an immediate request for comment from reporters.
The chipmaker reported a global headcount of approximately 52,000 employees as of September of last year, with the vast majority working on a full-time basis. Qualcomm’s fiscal year typically concludes in late September.
As one of the world’s largest manufacturers of smartphone processors, Qualcomm has faced headwinds this year driven by a broader downturn in consumer electronics sales. Rising memory prices have weighed heavily on demand across several key markets. Financial performance has lagged behind wider market gains, with Qualcomm shares rising just 1.5% over the course of 2026. By comparison, the benchmark S&P 500 has posted gains exceeding 12%, while the Philadelphia Semiconductor Index has surged nearly 60%.
During its most recent earnings report in late July, Qualcomm issued a quarterly profit forecast that fell short of Wall Street estimates. At the time, executives indicated that revenue derived from Apple products would decline at a faster pace than previously anticipated. However, leadership also projected that expansion within data-center operations and other non-handset divisions would more than compensate for the lost mobile revenue by fiscal 2027.
Qualcomm anticipates that the majority of its chip sales will originate from non-smartphone sectors by fiscal 2027 as the company aggressively expands its footprint in the rapidly growing artificial intelligence data-center market.
Amon stated in the employee memo that decisions regarding the workforce reductions will take into account broader business priorities, organizational needs, and the specific skills and expertise required for future operations.
As the company has expanded its operations, the competencies and skills required have also evolved, Amon wrote. He emphasized the necessity of having the right individuals in the proper roles to ensure peak performance and ongoing corporate success.
