Qualcomm will begin performance-based layoffs worldwide in November as it reallocates resources toward AI data center and edge computing markets.

Qualcomm has told employees it will cut jobs worldwide following its annual performance reviews, and it expects to begin notifying affected employees in November. According to a Reuters report, CEO Cristiano Amon described the move as a "performance-focused reduction" intended to build a "stronger performance culture." He said the company will consider organizational needs, business priorities, and employees' skills and expertise when determining which positions are affected.

"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. Qualcomm had roughly 52,000 employees at the end of its 2025 fiscal year, which typically ends in late September.

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

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

The layoff decision comes as Qualcomm positions itself for future growth. While mobile chips remain its core business, its most promising opportunities may lie in data center silicon, automotive platforms, personal computing, and edge computing, all of which require specialized engineering talent. A performance-based reduction could allow the company to retain its most valuable employees in those areas 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 follows Qualcomm's Q3 2026 financial results, which included a 4% year-on-year decline in revenue and a 25% drop in net income. Its core handset business recorded a 20% annual decline in revenue. 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 driven largely by AI. After several years of aggressive hiring, many tech companies are now trimming their workforces to fund AI ambitions. Meta announced plans to cut 8,000 jobs to fund AI infrastructure. Even as companies cut roles that don't fit their AI roadmaps, they are 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.