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

Updated the stock 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 carry out "performance-based layoffs" following the annual employee review. Reuters has reviewed the memo, and notifications will start to be issued in November.

Amon stated that the layoffs aim to build a "stronger performance culture" and address the company's "persistent underperformance."

The memo did not specify how many positions will 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 chipmakers, Qualcomm has been hit this year by declining consumer electronics sales, as surging memory prices dampened demand in key markets.

So far in 2026, its stock price has only risen 1.5%, while the benchmark S&P 500 index .SPX has risen over 12%, and the Philadelphia Semiconductor Index .SOX has surged nearly 60%.

Qualcomm shares fell about 0.5% in early trading Tuesday before rebounding to rise more than 1%.

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In its most recent earnings report released in late July, Qualcomm forecast quarterly profit below expectations (link), and said revenue from Apple products would decline faster than previously anticipated. The company also hinted that by fiscal year 2027, growth in data center and other non-smartphone businesses would fully offset lost income.

As the company expands into the fast-growing AI data center market, it expects by fiscal year 2027 that the majority of its chip sales will come from businesses outside of smartphones.

Amon said in the memo that the layoff process will comprehensively consider factors such as business priorities, organizational needs, skills, and expertise.

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

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