Exclusive report - Internal memo shows Qualcomm will conduct global layoffs based on performance

Aditya Soni/Jaspreet Singh

Reuters, October 20 - Qualcomm Inc. (QCOM.O) Chief Executive Officer Cristiano Amon said in a memo to employees on Monday that the company will implement "performance-driven layoffs" after the annual employee assessment. Reuters has reviewed the memo, and layoff notices will begin to be issued in November.

Amon stated that the layoffs aim to establish a "stronger performance culture" and address the company's "persistent underperformance" issues.

The memo did not specify how many positions would be affected, and Reuters was unable to immediately determine the scope 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 a decline in consumer electronics sales due to soaring memory prices suppressing demand in key markets.

In 2026, its share price rose only 1.5%, while the benchmark S&P 500 index .SPX jumped more than 12%, and the Philadelphia Semiconductor Index .SOX surged nearly 60%.

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In its latest earnings report released in late July, Qualcomm forecast quarterly profits below expectations and said income from Apple products would decline faster than expected. Meanwhile, the company stated that by fiscal year 2027, growth in data center and other non-smartphone businesses would completely offset this income loss.

As the company expands into the fast-growing artificial intelligence data center market, it is expected that by fiscal year 2027, most of its chip sales revenue will come from businesses other than smartphones.

Amon said in the memo that the layoff process would take into account business priorities, organizational needs, skills, and expertise.

"As our business expands, the competencies and skills we require are constantly increasing," he wrote. "We must have the right people in the right positions so they can perform at their best and so the company can continue to succeed."

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