Qualcomm to cut jobs globally in "performance-based" layoffs, as company pivots to AI data center and edge computing markets

Qualcomm has told employees it will cut jobs worldwide after its annual performance reviews, and it expects to begin informing affected employees in November. According to a Reuters report, CEO Cristiano Amon framed the move as a “performance-focused reduction” intended to build a “stronger performance culture,” stating that the company will consider organizational needs, business priorities, and employees’ skills and expertise when determining affected positions.

“The reduction will address employees who have consistently fallen short of expectations,” said Amon. The memo did not specify which departments would be affected or how many jobs would be cut. The company had roughly 52,000 employees at the end of its 2025 fiscal year, typically in late September.

Qualcomm, one of the world’s largest smartphone chip manufacturers with customers including Apple, Xiaomi, and Samsung, has been hit by an industry-wide decline in consumer electronics sales as rising memory costs reduce demand. Its shares have risen just 1.5% in 2026, compared to gains of almost 60% for the Philadelphia Semiconductor Index.

As a result, Qualcomm is strategically pivoting to AI infrastructure and edge computing, following a broadening trend across the semiconductor industry. The company unveiled its AI200 and AI250 AI inference accelerators in October 2025. After its latest earnings report projected lower quarterly profits than initially estimated, the company said that growth in its data center business would offset any lost revenue by fiscal year 2027.

Qualcomm’s layoff decision comes as it tries to position itself for future growth. While mobile chips remain its core business, its best future opportunities might lie in data center silicon, automotive platforms, personal computing, and edge computing, and all those fields require specialized engineering talent. A performance-based reduction could let the company retain its most valuable employees in those fields while cutting duplicated roles, lower-performing teams, and positions that no longer fit its strategy.

"As we have expanded the business, so have the competencies ⁠and skills ​we require," Amon wrote. "We must have the right ​people in the right roles so they can perform at their best and the company can continue ​to succeed." The move comes on the back of Q3 2026 financial results that included a 4% year-on-year decline in revenue and 25% lower net income. The core handset business recorded a 20% decline in revenue on the year, too. The company reportedly recorded $97 million in severance-related restructuring charges in the first nine months of its fiscal year.

Qualcomm’s move is part of a larger industry transition, largely driven by AI. After several years of aggressive hiring, many tech companies are now trimming their workforce to fund AI ambitions. Meta announced plans to cut 8,000 jobs to fund AI infrastructure. Even as companies are cutting jobs that don’t fit their AI roadmap, they're fiercely competing for process engineers, chip designers, and AI software developers. McKinsey and the SEMI Foundation estimate that the United States could face a shortage of up to 157,000 semiconductor workers by 2030, while 73% of chip companies report difficulty filling engineering roles.

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