Qualcomm plans to reduce its global workforce following annual employee performance reviews, with notifications to affected employees expected to begin in November. The announcement comes as the semiconductor giant faces weakening consumer electronics demand, rising memory prices and pressure to diversify its revenue beyond smartphone chips.
According to an internal memo from Chief Executive Officer Cristiano Amon reviewed by Reuters, the planned Qualcomm layoffs 2026 are being positioned as a performance-focused reduction aimed at strengthening organisational effectiveness and aligning employee capabilities with the company’s evolving business priorities. However, the memo did not disclose the number of positions that could be eliminated.
Qualcomm Announces Performance-Based Workforce Reductions
According to Amon, the company was planning to foster a culture of performance improvement by focusing on areas where the company’s expectations had not been fulfilled. The Qualcomm layoff 2026 is slated to occur after the annual review of employees based on organisational needs, business objectives, and the competence and expertise of the employees.
According to Amon, as the company grows, so do the competency needs of the organisation. He stated that the company needs to ensure that competent individuals are hired for certain positions for the continued growth of the company.
The company had about 52,000 employees across the world as of September 2025, out of which a vast majority were full-time employees. The number of layoffs to be carried out is yet to be known, and Qualcomm did not comment when Reuters contacted them.
Consumer Electronics Market Creates Pressure
The Qualcomm layoffs 2026 announcement comes amid challenges in the company’s core smartphone chip business. Weakening consumer electronics sales and rising memory prices have weighed on demand across important markets, creating additional pressure on the semiconductor manufacturer.
Performance of Qualcomm’s stocks has also been poor compared to other market indices. The stock of Qualcomm was up by about 1.5% in 2026, according to a Reuters report, while those of the S&P 500 were up by more than 12%.
According to Qualcomm’s quarterly earnings report released in July, its profit was lower than what analysts had projected. Revenue of Apple’s products was expected to drop much faster than initially anticipated by Qualcomm.
AI Data Centres Become a Strategic Priority
Though such problems exist, Qualcomm has been exploring other opportunities beyond smartphone chipsets. By 2027, the company foresees non-smartphones accounting for the greater part of Qualcomm’s chip sales, driven by investments into AI systems and data center chips.
The shift in strategy may bring about a change in terms of staffing needs as the company gains skills in new technology areas. In this regard, the Qualcomm Layoffs 2026: may be a result not only of poor performance evaluations but also of Qualcomm’s strategy to adjust its staff accordingly to its commercial needs.
However, no information is provided in the internal memo on the number of job cuts within each department or a certain region.
What the Announcement Means for Employees
Qualcomm Layoffs 2026: Job Security Concerns Arise as the Company Reevaluates Organizational Structure. Workers are set to be notified from November, although there has been no exact timeline or figure released by the company concerning the number of positions affected.
To the whole semiconductor sector, the story shows the burden faced by the established manufacturers in terms of cost management amid growing opportunities for development. The company’s success in balancing its decisions regarding the workforce and its efforts to expand in new areas, such as AI infrastructure and non-smartphone businesses, will be critical for the future strategy of Qualcomm.
Qualcomm Layoffs 2026: The Scale and Impact of the Move Will Become Clearer Over Time.