Qualcomm to Begin Global Performance-Based Layoffs in November
The chipmaker will cut jobs worldwide starting in November as it shifts focus to AI data centers and edge computing amid weaker consumer demand.
Key points
- Qualcomm will start informing affected employees of job cuts in November following annual performance reviews.
- CEO Cristiano Amon described the move as a performance-focused reduction to align staff with new business priorities.
- The company reported a 4% year-over-year revenue decline and 25% lower net income for the third quarter of 2026.
Qualcomm will begin implementing performance-based layoffs globally in November, the company announced to its workforce. The semiconductor manufacturer plans to inform affected employees after completing its annual performance reviews, marking a significant shift in personnel strategy amid changing market conditions.
According to a report by Reuters, CEO Cristiano Amon framed the reductions as necessary to build a stronger performance culture. The company stated it would evaluate organizational needs, business priorities, and individual skills when determining which positions are eliminated. Amon noted the cuts would address employees who have consistently failed to meet expectations.
Strategic Pivot to AI and Data Centers
Qualcomm is reallocating resources toward artificial intelligence infrastructure, data centers, automotive platforms, personal computing, and edge computing. This strategic pivot follows an industry-wide decline in consumer electronics sales, driven partly by rising memory costs that have suppressed demand. The company unveiled its AI200 and AI250 AI inference accelerators in October 2025 to support this transition.
The firm recently projected lower quarterly profits than initially estimated but stated that growth in its data center business would offset lost revenue by fiscal year 2027. While mobile chips remain its core business, Qualcomm views data center silicon and specialized engineering roles as key opportunities for future growth.
Financial Context and Workforce Impact
Qualcomm had approximately 52,000 employees at the end of its 2025 fiscal year, which typically concludes in late September. The company’s shares have risen just 1.5% in 2026, lagging significantly behind the Philadelphia Semiconductor Index, which gained nearly 60% during the same period. This underperformance reflects broader challenges in the consumer electronics sector.
The layoff decision coincides with third-quarter 2026 financial results that showed a 4% year-on-year decline in revenue and a 25% drop in net income. Amon wrote that the company must ensure the right people are in the right roles to succeed as competencies and skills requirements evolve.
What should you do?
Security and technology professionals should monitor official communications from Qualcomm for updates on department-specific impacts. Employees should review their recent performance evaluations and documentation of contributions to ensure records are accurate. Those in affected sectors should update their professional profiles and networks to prepare for potential transitions.
Background: Edge computing
Edge computing processes data near its source instead of sending it to a distant data center. This approach lowers delay, saves bandwidth, and keeps sensitive information local. It shifts security responsibilities from the core network to individual devices.
Read the full guide: Edge Computing Explained: Why Processing Data Locally Changes Everything
What to do and how to stay safe: Qualcomm
- Review internal company communications for specific details on which departments and roles are affected by the restructuring.
- Document recent performance reviews and key project contributions to maintain a clear record of professional achievements.
- Update professional networking profiles and resumes to reflect current skills, particularly those relevant to AI and data center infrastructure.
- Monitor official financial reports and press releases for further guidance on the company’s strategic direction and workforce plans.
Step-by-step guide: Prompt Injection Warning Signs: How to Spot AI Manipulation
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
When will Qualcomm employees be notified about the layoffs?
Qualcomm expects to begin informing affected employees in November, following the completion of annual performance reviews.
How many jobs is Qualcomm cutting?
The company has not specified the exact number of jobs to be cut or which departments will be affected by the reductions.
Why is Qualcomm implementing these layoffs?
The company is pivoting toward AI infrastructure and edge computing while addressing weaker consumer electronics demand and recent financial declines.
