Global semiconductor giant Qualcomm is preparing to reduce its workforce worldwide as part of a performance-focused restructuring aimed at improving operational efficiency and aligning employee capabilities with changing business priorities.
According to a Reuters report, CEO Cristiano Amon informed employees through an internal memorandum that layoffs would follow annual performance reviews, with notifications beginning in November 2026. The company has not disclosed the number of positions affected.
The restructuring comes amid weakening consumer electronics demand, rising memory prices and mounting pressure on Qualcomm's smartphone semiconductor business. These challenges are forcing the chipmaker to reassess its workforce and long-term growth strategy.
Qualcomm employed approximately 52,000 people globally as of September 2025. Its shares have significantly underperformed the broader semiconductor market in 2026, reflecting investor concerns over slowing smartphone demand and changing revenue expectations.
From Smartphones to AI Infrastructure
Qualcomm is increasingly diversifying beyond mobile processors into AI computing, automotive technologies, connected devices and data-center infrastructure. The company expects non-smartphone businesses to account for most of its chip sales by fiscal 2027.
The restructuring also reflects a wider technology industry transition, where companies are prioritising specialised engineering capabilities, AI expertise and higher productivity while reviewing traditional workforce structures.
The bigger question is whether Qualcomm can successfully transform its business without losing critical engineering talent. As semiconductor competition intensifies, balancing workforce optimisation with innovation will be essential to sustaining growth in the emerging AI-driven computing economy.
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