US chipmaker Qualcomm is preparing to cut jobs worldwide as it reassesses its workforce and shifts its focus towards new growth areas, including artificial intelligence data centres and automotive technology. The planned layoffs follow the company’s annual employee reviews, with notifications expected to begin in November 2026.
CEO Cristiano Amon informed employees about the decision in an internal memo, describing it as a performance-focused reduction. The company has not disclosed how many employees will be affected or which teams and locations could face cuts.
Why Is Qualcomm Cutting Jobs?
According to the internal memo reported by Reuters, Qualcomm wants to strengthen its performance culture and address areas that have repeatedly fallen short of expectations.
The company also plans to assess its organisational requirements, business priorities and the skills needed for future growth. As its operations expand into new markets, Qualcomm is reviewing whether its workforce has the expertise required for its evolving strategy.
Smartphone Market Faces Pressure
Qualcomm is a major supplier of smartphone processors and wireless technologies. However, slowing consumer electronics demand and rising memory prices have put pressure on the market, creating challenges for companies across the smartphone supply chain.
Qualcomm has also warned that revenue from Apple-related products could decline faster than previously anticipated. In its July 2026 earnings outlook, the company projected quarterly profit below analysts’ expectations.
Qualcomm Looks Beyond Smartphones
To reduce its reliance on the smartphone market, Qualcomm is expanding into areas such as AI data centres, automotive technology and connected devices.
The company expects its non-handset businesses to help offset declining Apple-related revenue by fiscal 2027. It has also indicated that businesses outside smartphones could account for the majority of its chip sales during that financial year.
How Many Employees Could Be Affected?
Qualcomm has not announced a final number of job cuts. The company had approximately 52,000 employees worldwide as of September 2025, according to Reuters.
Employees are expected to receive notifications beginning in November. The extent of the reductions and their impact on individual teams remain unclear.
What the Layoffs Mean for the Tech Industry
Qualcomm’s planned workforce reduction reflects the challenges facing established technology companies as demand shifts and competition intensifies in emerging markets. While its smartphone business remains important, its expansion into AI infrastructure and automotive technology signals a broader strategic transition.
The coming months should provide more clarity on the scale of the layoffs and how Qualcomm intends to balance workforce changes with its plans for future growth.