Qualcomm (QCOM.US) reportedly launches global "performance-oriented" layoffs, notices to be issued starting from November

According to Golden Ten Data APP, it has been reported that Qualcomm (QCOM.US) CEO Cristiano Amon stated in a memo to employees on Monday that after the annual employee evaluation, the company will conduct "performance-oriented layoffs" globally, with related notifications beginning in November.

Amon said that this move aims to build a "stronger performance culture" and address the company’s situation of "continuous underperformance." The memo did not specify how many positions will be affected.

As of last September, Qualcomm had around 52,000 employees worldwide, most of whom are full-time. The company’s fiscal year typically ends in September.

As one of the world’s largest smartphone chip manufacturers, Qualcomm has been impacted this year by a decline in consumer electronics sales, and soaring memory prices have suppressed demand in key markets.

In its latest financial report released at the end of July, Qualcomm forecasted that quarterly profits would be below expectations and said that revenue from Apple products would fall faster than anticipated. The company also stated that by fiscal year 2027, growth in data centers and other non-smartphone businesses will be sufficient to offset the lost revenue. Qualcomm expects that as it expands into the fast-growing AI data center market, most chip sales in fiscal year 2027 will come from non-smartphone businesses.

Data shows that the company’s Q3 revenue fell 4% year-on-year to $9.95 billion, better than the market expectation of $9.62 billion; adjusted earnings per share fell 20% year-on-year to $2.21, in line with market expectations; mobile business revenue fell 20% year-on-year to $5.086 billion. Qualcomm expects adjusted earnings per share for Q4 to be between $2.05 and $2.25, below the market consensus of $2.35.

In the memo, Amon stated that layoff decisions will consider business priorities, organizational needs, and skill expertise. "As the business expands, the capabilities and skills we need are also changing," he wrote. "We must ensure that the right people are in the right positions so that they can perform at their best, and the company can continue to be successful."

As of Tuesday’s close, Qualcomm shares rose 1.26%. Since 2026, Qualcomm’s share price has risen only 4%, while the S&P 500 Index has gained more than 12% and the Philadelphia Semiconductor Index has risen nearly 60% over the same period.