Qualcomm is preparing to cut jobs worldwide starting November, as it faces a downturn in its smartphone chip business and shifts focus to emerging areas such as data centres, automotive technology and connected devices. The company has not disclosed how many employees will be affected, but the decision follows its annual performance reviews and forms part of a broader restructuring plan.
According to Reuters, CEO Cristiano Amon informed staff through an internal memo that the layoffs are aimed at strengthening a performance driven culture and aligning talent with the company’s evolving needs. Qualcomm will assess roles based on business priorities, organisational requirements and employee skills before finalising the cuts.
The move comes amid a challenging period for the smartphone market. Demand for consumer electronics has weakened, and rising component costs have squeezed margins. Qualcomm’s July earnings forecast fell short of analyst expectations, with the company warning that revenue from Apple products would decline faster than anticipated.
While the short term outlook is tough, Qualcomm is betting on diversification. It expects growth in data centre chips, automotive systems and connected devices to offset the smartphone slowdown by the 2027 financial year. The company, which employs around 52,000 people globally, is reshaping its workforce to match this transition.
For HR leaders, Qualcomm’s restructuring underscores a growing trend in tech—where performance reviews are no longer just about evaluation but about strategic workforce realignment. As the company pivots toward AI driven and automotive technologies, the challenge will be to retain critical talent while ensuring the right skills are in the right roles for the next phase of growth.
