Qualcomm will begin notifying select employees of job cuts in November following this year's performance reviews, according to an internal memo from CEO Cristiano Amon reviewed by Reuters. The move is described as a "performance-focused reduction" aimed at building a "stronger performance culture" and addressing roles where the company has "consistently fallen short of expectations." Notifications will roll out globally with no specific headcount or department details disclosed in the memo.

The company had approximately 52,000 employees at the end of its 2025 fiscal year. Amon indicated that business priorities, organizational needs, skills, and expertise will guide decisions on which positions are eliminated. The action follows earlier restructuring activity, including roughly 105 jobs cut in San Diego earlier in 2026 and $97 million in restructuring charges booked in the first nine months of the fiscal year.

Qualcomm has faced pressure in its core smartphone chip business amid declining consumer electronics demand and rising memory costs. The memo comes as the company signals that non-smartphone segments, particularly AI data centers, are expected to represent the majority of chip sales by fiscal 2027, with a target of $5 billion in data center revenue that year. This quarter's earnings already reflected challenges, including lower-than-expected profit forecasts and faster-than-anticipated declines in Apple-related revenue.