Qualcomm to Cut Jobs Globally, Begin Notifying Employees in November After Performance Reviews

Key Facts

Qualcomm plans to cut jobs worldwide following annual performance reviews, with notifications to affected employees set to begin in November, according to an internal memo from Chief Executive Cristiano Amon reviewed by Reuters. Amon described the move as a "performance-focused reduction," saying the company wants to build a stronger performance culture and address cases of sustained underperformance. The memo did not specify how many jobs would be affected, and Reuters was not immediately able to estimate the scale of the cuts. Roles will be assessed in light of business priorities, organizational needs, and employees' skills and experience. That frames the review as an effort to align the workforce with the company's needs, while Qualcomm has announced no detailed timetable beyond the start of notifications in November.

Amon said the company's expansion had changed the capabilities and skills it needs, adding: "As our business has expanded, so too have the capabilities and skills we need." He said the company is seeking "the right people in the right roles," linking hiring and retention decisions to its organizational priorities. Qualcomm had about 52,000 employees worldwide in September 2025, most of whom worked full time, Reuters reported. The company did not say whether the cuts would be concentrated in particular regions or business units. The memo also gave no target figure or estimate of the financial savings expected from the decision.

The announcement came as the handset business faces pressure, though the company did not directly link the decline in that business's revenue to the job cuts. Handset revenue was $5.086 billion in the quarter ended June 28, 2026, compared with $6.328 billion in the same quarter a year earlier, according to Qualcomm's quarterly filing. Ticker platform estimated the year-over-year decline at about 20% to $5.09 billion in the June quarter. By contrast, automotive revenue rose to $1.588 billion from $984 million in the comparable period, a 61% year-over-year increase, according to company data. The figures reflect a divergence between the contracting handset business and growing automotive operations within the company's portfolio.

Qualcomm's total revenue was $9.9 billion in the fiscal third quarter, while earnings per share were $1.87 on a GAAP basis and $2.21 on a non-GAAP basis. The quarter ended June 28, 2026, according to results published by the company. In the QCT division, combined automotive and Internet of Things revenue grew 28% year over year. Qualcomm said in its filing that the decline in QCT revenue was mainly related to lower chip shipments to some major device makers. It added that those customers adjusted production plans to reduce inventory amid memory supply constraints and rising prices.

Qualcomm recorded $97 million in restructuring costs during the nine months ended June 28, 2026, most of which was related to termination expenses, according to its quarterly filing. The figure provides context on previous restructuring costs, but does not establish the cost or scale of the new global cuts. At its June investor day, the company raised its target for revenue from non-handset businesses to $40 billion in fiscal 2029. It also targets more than $15 billion in revenue from data centers alone by that fiscal year. The company says handsets will account for about one-third of QCT revenue by then, as it seeks to reduce its relative reliance on the business.

Qualcomm warned that memory supply constraints and rising prices could weigh on demand from several handset makers and on its financial results in coming quarters. The company said the ultimate impact would depend on how supply, prices and consumer demand evolve. Qualcomm shares closed at $179.6 on October 26, 2026, according to EL7 data. The company set November 4, 2026, after the market close, as the date for reporting its fourth-quarter and fiscal 2026 results. The upcoming results will provide its latest financial data after its warning about the handset market, while the memo did not specify the number of jobs targeted or whether the company would disclose further details about the cuts.