Qualcomm is reshaping its global workforce following its latest round of annual employee reviews. The company plans to trim staff over the coming months while redirecting its internal resources toward artificial intelligence and data center hardware. The shift highlights how even top chipmakers are reconsidering their headcount as phone sales cool down.
Performance cuts starting in November
Qualcomm CEO Cristiano Amon broke the news in an internal memo reviewed by Reuters. The document informed staff that global job reductions will begin in November. Amon described the upcoming layoffs as a performance-focused effort to build a stronger corporate culture and address teams that consistently missed company expectations.
The internal memo did not state how many employees will lose their jobs in this round of cuts. That said, Qualcomm reported roughly 52,000 global workers at the end of its last fiscal year. Company leadership is currently reviewing team structures, business priorities, and specialized technical skills to determine which specific roles will be eliminated across various departments.
Smartphone slump drives a major pivot
These cutbacks arrive during a rough stretch for the broader consumer electronics market. High memory prices and weak smartphone sales have slowed down major chipmakers across international markets, while an expected drop in revenue from Apple products is putting extra financial strain on Qualcomm’s core mobile division.
To offset falling phone revenues, Qualcomm is pushing heavily into new technology sectors to diversify its income stream. The company expects non-smartphone chips to generate the majority of its overall revenue by fiscal 2027, raising its long-term non-handset revenue target to $40 billion by 2029 with a heavy focus on automotive chips, connected IoT devices, and enterprise AI server hardware.
Realigning teams for the next tech wave
Wall Street has remained cautious on Qualcomm this year, with its stock gaining just 1.5 percent compared to massive rallies in the broader semiconductor index. Recent financial forecasts also pointed to lower quarterly profits, giving executive leadership another strong incentive to streamline internal operations and cut costs.
This performance-based restructuring shows how quickly semiconductor priorities are changing across the tech industry. Qualcomm is trimming its workforce and realigning its technical talent as it phases out underperforming units to protect its bottom line and build out the talent needed for its AI future.
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