Qualcomm Plans Global Job Cuts Starting November
Qualcomm is to implement a programme of global job reductions, according to an internal memo reviewed by Reuters. These cuts, described as a "performance-focused reduction," follow the organisation's annual employee reviews. CEO Cristiano Amon informed staff that notifications for affected personnel are scheduled to commence in Nov.
The chief executive stated the initiative aims to foster a more robust performance culture. It also addresses situations where the company has consistently failed to meet expectations. The precise number of positions to be eliminated has not been disclosed, preventing immediate determination of the reduction's full scale.
And Qualcomm did not issue an immediate public statement regarding these changes. The Big Tech firm employed approximately 52,000 individuals worldwide as of Sept. last year, predominantly on a full-time basis. Its financial reporting year typically concludes in late Sept.
Qualcomm, recognised as one of the world's largest smartphone chipmakers, has experienced a challenging period this year. A downturn in consumer electronics sales, coupled with an increase in memory prices, has adversely affected demand across key markets. This broader market shift has impacted the company's financial standing.
The company's shares reflected this trend, recording a modest rise of 1.5% in 2026. This performance stands in contrast to the broader market, with the benchmark S&P 500 index seeing gains exceeding 12%. The Philadelphia Semiconductor Index, a more direct comparison, advanced by nearly 60% over the same period, highlighting Qualcomm's relative underperformance. However, the company's shares were up over 1% earlier in trading, following an initial decline of approximately 0.5%.
But the firm has outlined plans to recalibrate its business focus. In its earnings report from late July, Qualcomm projected quarterly profit figures below previous estimates. It also anticipated that revenue derived from Apple products would diminish more rapidly than initially forecast.
The company concurrently signalled that growth within its data centre and other non-handset businesses is expected to offset the anticipated revenue losses by fiscal 2027. This strategic pivot involves a greater emphasis on new market segments. Qualcomm foresees that the majority of its chip sales will originate from business ventures other than smartphones by fiscal 2027. This move includes an expansion into the expanding AI data centre market.
Amon reiterated in his memo that various factors would determine the job reductions. These considerations include business priorities, organisational requirements, specific skills, and overall expertise. So, the company is aiming to align its workforce with evolving strategic goals.
"As we have expanded the business, so have the competencies and skills we require," Amon wrote. He added that the organisation must ensure it has the correct personnel in appropriate roles to optimise performance and maintain continued company success. This statement suggests a refinement of the existing workforce structure to meet future demands.
Qualcomm initiated global job reductions following annual performance reviews.
The cuts are part of an effort to build a stronger performance culture and address unmet expectations.
The company is shifting its business focus towards AI data centres and non-handset sectors.
Qualcomm's share performance has lagged behind broader market indices.
Future strategy involves aligning employee skills and roles with changing organisational needs.
Source: Reuters
