Exclusive Report - Internal Memo Reveals Qualcomm Will Implement Performance-Based Layoffs Globally

Updated share price in paragraph 7

Aditya Soni/Jaspreet Singh

Reuters, October 20 - Qualcomm (QCOM.O) CEO Cristiano Amon told staff in a memo on Monday that the company will implement "performance-oriented layoffs" following annual employee reviews. Reuters has reviewed the memo, and notifications will begin in November.

Amon stated that the layoffs are intended to build a "stronger performance culture" and address the company’s "continued underperformance."

The memo did not specify how many positions would be affected, and Reuters was unable to immediately determine the scale of the layoffs.

Qualcomm did not immediately respond to a request for comment. As of last September, the company had about 52,000 employees worldwide, most of whom are full-time. Its fiscal year typically ends in late September.

As one of the world’s largest smartphone chip makers, Qualcomm was hit this year by declining consumer electronics sales due to soaring memory prices dampening demand in key markets.

So far in 2026, its share price has risen only 1.5%, while the benchmark S&P 500 Index .SPX is up more than 12%, and the Philadelphia Semiconductor Index .SOX is up nearly 60%.

In early Tuesday trading, the stock fell about 0.5%.

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In its latest financial report released in late July, Qualcomm projected quarterly profit below market expectations and said income from Apple products would decline faster than anticipated. At the same time, the company said that by fiscal year 2027, growth in data centers and other non-mobile businesses would fully offset this revenue loss.

With the company expanding into the fast-growing AI data center market, it expects that by fiscal year 2027, most of its chip sales revenue will come from businesses beyond smartphones.

In the memo, Amon wrote that the layoff process would take into account business priorities, organizational needs, skills, and expertise.

“As the business expands, the capabilities and skills we need are also continuously increasing,” he wrote. “We must have the right people in the right positions, so they can perform at their best and the company can continue to succeed.”

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