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

Added pre-market stock price movement in paragraph 7

Aditya Soni/Jaspreet Singh

Reuters, October 20 - Qualcomm Inc (QCOM.O) CEO Cristiano Amon told employees in a memo on Monday that the company will implement "performance-driven layoffs" following its annual staff assessments. Reuters has reviewed the memo, and layoff notices will begin to be sent out starting in November.

Amon said the layoffs aim to build a "stronger performance culture" and address the company's "continuing 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 requests 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 manufacturers, 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 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 Tuesday's pre-market trading, the stock was down about 1%.

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In its most recent financial report released in late July, Qualcomm projected quarterly profit would fall short of market expectations and said income from Apple products would decline faster than expected. The company also stated that by fiscal year 2027, growth in data center and other non-smartphone businesses will fully offset revenue losses.

As the company expands into the rapidly growing AI data center market, it expects by fiscal year 2027, most chip sales will come from businesses other than smartphones.

Amon stated in the memo that business priorities, organizational needs, skills, and expertise will all be considered during the layoff process.

"As our business expands, the capabilities and skills we require continue to increase," 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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