Qualcomm is preparing to cut jobs across its global workforce following its annual employee performance reviews, according to an internal memo from chief executive officer Cristiano Amon. The US-based semiconductor company plans to begin notifying affected employees in November, although it has not disclosed the number of positions that will be eliminated.
The announcement comes as Qualcomm faces changing market conditions and looks to expand beyond its traditional smartphone chip business. The company is investing in areas such as artificial intelligence (AI), data centres, automotive technology and connected devices as it seeks to build new sources of revenue.
In his memo to employees, Amon said the planned reductions would address areas where the company had consistently fallen short of expectations. He also highlighted the need to strengthen Qualcomm’s performance culture and ensure its workforce matches its evolving business requirements.
The announcement has raised concerns among employees about job security, particularly because the company has not provided details about the locations, departments or roles likely to be affected.
Amon’s memo linked the planned job cuts to annual performance reviews and the company’s changing organisational needs. He said Qualcomm needed to address situations where performance had repeatedly failed to meet expectations.
The company will consider its business priorities, organisational requirements and the skills needed for future growth when determining where reductions are necessary.
Amon also pointed to changes in Qualcomm’s business and the competencies required to support its expanding operations. The company is competing in markets that demand expertise beyond smartphone processors, including AI computing, automotive systems and high-performance connectivity.
However, Qualcomm has not confirmed whether the planned reductions will primarily affect underperforming employees, particular business units or a wider range of roles.
According to Reuters, the scale of the layoffs could not be independently established. Qualcomm had approximately 52,000 employees worldwide as of September 2025, providing an indication of the size of its global workforce.
Employees are expected to receive further information when the company begins issuing notifications in November.
Qualcomm is best known for designing semiconductor chips used in smartphones. Its Snapdragon processors power devices from several leading manufacturers, while its technology also supports mobile connectivity and wireless communication.
The smartphone business remains important to Qualcomm, but the market has become increasingly competitive. Consumer demand, device replacement cycles and rising memory prices can affect smartphone manufacturers’ production plans and their demand for semiconductor components.
Higher component costs can also push up handset prices, potentially making consumers more cautious about upgrading their devices.
Qualcomm must therefore balance its established mobile business with investment in other markets that could offer stronger long-term growth.
Its share price has also lagged behind major US market benchmarks in 2026. Reuters reported that Qualcomm shares had gained around 1.5% during the year, compared with a rise of more than 12% for the S&P 500 and nearly 60% for the Philadelphia Semiconductor Index at the time of its report.
The comparison reflects investor interest in the wider semiconductor sector and the different growth expectations attached to chipmakers. However, share-price performance alone does not explain the company’s decision to restructure its workforce.