Qualcomm to Cut Jobs Worldwide in Performance-Focused Workforce Reduction, Internal Memo Reveals

Mobile chipmaker Qualcomm is preparing to execute a global round of workforce reductions framed as a performance-driven restructuring, according to an internal staff memo sent by Chief Executive Officer Cristiano Amon and reviewed by Reuters.

Formal termination notifications are scheduled to begin rolling out in November 2026 following the conclusion of the company's annual employee performance review cycle.

Performance Culture and Strategic Skill Realignment While the internal communication did not specify the exact number or percentage of positions being eliminated, Amon framed the downsizing as a measure to instill operational accountability and recalibrate technical competencies:

• Performance Thresholds: The cuts aim to build "a stronger performance culture" and directly address business pockets where output "has consistently fallen short of expectations."

• Skill Shift: Amon highlighted that the company's ongoing expansion into new computing verticals necessitates a transformation in technical skill sets:

"As we have expanded the business, so have the competencies and skills we require. We must have the right people in the right roles so they can perform at their best and the company can continue to succeed." — Cristiano Amon, CEO, Qualcomm

Consumer Slump and Market Underperformance The workforce tightening arrives against a challenging macroeconomic backdrop for mobile handset silicon:

• Smartphone Headwinds: Soaring memory component prices and dampened consumer replacement cycles have weighed heavily on smartphone shipments across primary international markets.

• Stock Lag: Qualcomm shares have significantly lagged broader market rallies, gaining just 1.5% in 2026, compared to a 12% rise in the S&P 500 and a near-60% surge across the Philadelphia Semiconductor Index.

• Apple Revenue Taper: In its financial disclosures, Qualcomm issued quarterly earnings guidance trailing Wall Street consensus, acknowledging that modem chip revenue from Apple devices is projected to decline faster than initially anticipated.

The AI Data Center Pivot To mitigate declining smartphone reliance, Qualcomm is actively directing research and human capital toward high-performance computing and AI data center processors, targeting non-smartphone business lines to fully offset the contraction in Apple-derived revenues by fiscal 2027.