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Chipmaker Qualcomm will begin notifying employees of job cuts in November following annual performance reviews, as it seeks to strengthen its performance culture amid weak consumer electronics demand and a push into AI data centres.
Qualcomm plans to cut jobs worldwide as part of a performance-focused restructuring initiative, according to an internal memo reviewed by Reuters.
Chief Executive Officer Cristiano Amon informed employees on Monday that the company would undertake a “performance-focused reduction” following its annual employee reviews, with notifications expected to begin in November. The memo did not disclose the number of employees likely to be affected.
Amon said the move was intended to build a stronger performance culture and address instances where employees had consistently failed to meet expectations.
The company will consider its business priorities, organisational requirements, and the skills and expertise needed for its evolving operations while determining the job cuts.
“As we have expanded the business, so have the competencies and skills we require,” Amon wrote in the memo, adding that Qualcomm must ensure the right people are in the right roles to support employee performance and the company’s long-term success.
Qualcomm had approximately 52,000 employees globally as of September 2025, most of whom were full-time workers. The company did not immediately respond to a Reuters request for comment.
The job cuts come as Qualcomm faces challenges in its core consumer electronics business, with rising memory prices weighing on demand in key markets.
More from BusinessThe company, one of the world’s largest smartphone chipmakers, has also faced pressure from an expected decline in revenue from Apple-related products.
In its latest earnings report in late July, Qualcomm forecast quarterly profit below market expectations and warned that revenue from Apple products would decline faster than previously anticipated.
However, the company expects growth in data centres and other non-handset businesses to more than offset the revenue decline by fiscal 2027.
Qualcomm is seeking to diversify beyond smartphones by expanding into the fast-growing artificial intelligence data centre market and other businesses.
The company expects the majority of its chip sales to come from businesses outside smartphones in fiscal 2027, highlighting its efforts to reduce dependence on the handset market.
Qualcomm’s shares have gained around 1.5 per cent in 2026, significantly underperforming the S&P 500, which has risen more than 12 per cent, and the Philadelphia Semiconductor Index, which has advanced nearly 60 per cent over the same period.
The latest job cuts signal a renewed focus on workforce performance and organisational priorities as Qualcomm navigates pressure in its traditional markets while pursuing new growth opportunities in AI infrastructure.
