Qualcomm (QCOM.US) is rumored to have initiated global “performance-oriented” layoffs and issued a notice starting in November

The Zhitong Finance App learned that according to reports, Qualcomm (QCOM.US) CEO Cristiano Amon told employees in a memorandum on Monday that the company will carry out “performance-oriented layoffs” around the world after the annual employee evaluation, and the relevant notice will be issued starting in November.

Amon said the move was aimed at building a “stronger performance culture” and addressing the company's “continuing failure to meet expectations.” The memorandum did not state how many jobs would be affected.

As of September of last year, Qualcomm had approximately 52,000 employees worldwide, most of whom were full time employees. The company's fiscal year usually ends at the end of September.

As one of the world's largest smartphone chip makers, Qualcomm was hit by a decline in consumer electronics sales this year, and soaring memory prices suppressed demand in key markets.

In the latest earnings report released at the end of July, Qualcomm predicted that quarterly profit was lower than expected, and said that revenue from Apple products would fall faster than expected. At the same time, the company said that by the 2027 fiscal year, the growth of data centers and other non-mobile phone businesses will be sufficient to make up for this portion of lost revenue. Qualcomm expects most chip sales in FY2027 to come from non-smartphone businesses as the company expands into the rapidly growing AI data center market.

According to the data, the company's Q3 revenue fell 4% yoy to US$9.95 billion, better than market expectations of US$9.62 billion; adjusted earnings per share fell 20% yoy to US$2.21, in line with market expectations; and mobile phone business revenue fell 20% yoy to US$5.086 billion. Qualcomm expects adjusted earnings per share for the fourth quarter to be between $2.05 and $2.25, which is lower than the general market estimate of $2.35.

Amon said in the memorandum that layoff decisions will take into account business priorities, organizational needs, and skill expertise. “As our business expands, so do the capabilities and skills we need,” he wrote. “We must have the right people in the right positions so they can perform at their best and the company can continue to be successful.”

Qualcomm closed up 1.26% by Tuesday's close. Since 2026, Qualcomm's stock price has risen by only 4%. Over the same period, the S&P 500 index has risen by more than 12%, and the Philadelphia Semiconductor Index has risen nearly 60%.