Qualcomm Plans Performance-Focused Layoffs From November

Qualcomm will cut jobs worldwide after its annual reviews, with notices starting in November, as handset demand softens and the chipmaker shifts toward AI data centers.

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What Did the Qualcomm Memo Say?

The memo describes the cuts as a "performance-focused reduction" meant to build "a stronger performance culture" and to address cases where teams have consistently fallen short of expectations. Amon wrote that business priorities, organizational needs, skills and expertise would all factor into decisions. He added that "as we have expanded the business, so have the competencies and skills we require."

Qualcomm had about 52,000 employees worldwide as of September 2025. The new round follows smaller cuts earlier this year. In April, the company filed state notices covering about 105 positions in San Diego.

Why Is Qualcomm Cutting Jobs Now?

Qualcomm is cutting jobs because its largest business is under pressure while the company funds a pivot into new markets. Soaring memory prices have weighed on consumer electronics demand, which hits smartphone chip volumes in key markets.

Fiscal third-quarter results, reported on July 29, showed the strain. Revenue fell 4% from a year earlier to about $9.95 billion, above the $9.69 billion consensus. Non-GAAP earnings per share of $2.21 missed the $2.23 forecast by two cents. Management also flagged a steep decline in revenue tied to Apple (NASDAQ: AAPL), and shares slid after the report.

For the fiscal fourth quarter, Qualcomm guided to revenue of $9.7 billion to $10.5 billion and non-GAAP EPS of $2.05 to $2.25. It expects handset revenue near $5.2 billion, with Android growth partly offset by lower Apple-related sales. The company reports those results on November 11.

How Did QCOM Shares React?

QCOM shares slipped about 0.8% in premarket trading on Tuesday, then rose roughly 1% in the morning session as the market weighed the absence of a headcount figure. The stock has risen only 1.5% this year. The S&P 500 has gained more than 12% over the same period, and the Philadelphia Semiconductor Index has climbed nearly 60%, lifted by demand for AI accelerators.

That gap matters because many ai stocks have rerated on data center exposure, while Qualcomm's earnings still depend on phones. Automotive is the bright spot: record quarterly revenue of $1.6 billion, up 61% year over year, and guidance for about 60% growth in the fourth quarter.

Strategic Context

Qualcomm is spending to diversify away from handsets. Its data center roadmap begins with connectivity products in fiscal 2026, adds custom silicon and AI accelerators in fiscal 2027, and brings server-class CPUs in fiscal 2028. Each stage requires engineering talent in different areas than the modem and mobile platform work that built the company.

The memo's wording ties the cuts to that skills shift. Targeting performance rather than whole business units suggests reallocation, not a broad contraction. Companies in the sector have used similar year-end review cycles to remove underperformers while still hiring in AI-related functions.

What Comes Next for Qualcomm's Workforce?

Qualcomm's next disclosure point is its November 11 earnings report, when it may quantify restructuring charges or comment on headcount. Notifications start in November, so regional filings, such as the WARN-style state notices Qualcomm filed in San Diego in April, could show the geographic spread of the cuts. Local labor rules will shape timing and severance outside the United States.

Outlook

Qualcomm is trimming staff while handset demand is constrained by memory costs and Apple-related revenue is falling. The scale of the reduction remains undisclosed. The fiscal fourth-quarter report on November 11 is the next test of whether automotive growth and the data center build-out can offset a softer phone cycle.