Qualcomm (QCOM.US) Reportedly Launches Global "Performance-Oriented" Layoffs, Notices to Be Issued Starting in November

Qualcomm (QCOM.US) CEO Cristiano Amon told employees in a memo on Monday that the company will carry out "performance-oriented layoffs" globally after its annual employee review, with notices to be issued starting in November, according to reports. Amon said the move is aimed at building a "stronger performance culture" and addressing the company's "continued failure to meet expectations." The memo did not specify how many positions would be affected. As of last September, Qualcomm had about 52,000 employees worldwide, most of them full-time. The company's fiscal year typically ends at the end of September. As one of the world's largest smartphone chipmakers, Qualcomm was hit this year by a decline in consumer electronics sales, with soaring memory prices suppressing demand in key markets. In its latest earnings report released at the end of July, Qualcomm forecast quarterly profit below expectations and said revenue from Apple Inc. products would decline faster than expected. The company also said that by fiscal 2027, growth in data centers and other non-handset businesses would be enough to offset that lost revenue. Qualcomm expects that, as it expands into the fast-growing AI data center market, most of its chip sales in fiscal 2027 will come from non-smartphone businesses. Data showed that the company's Q3 revenue fell 4% year over year to $9.95 billion, better than the market expectation of $9.62 billion; adjusted earnings per share fell 20% year over year to $2.21, in line with market expectations; handset business revenue fell 20% year over year to $5.086 billion. Qualcomm forecast fourth-quarter adjusted earnings per share of between $2.05 and $2.25, below the consensus estimate of $2.35. Amon said in the memo that the layoff decisions will take into account business priorities, organizational needs and skill expertise. "As the business expands, the capabilities and skills we need are also changing," he wrote. "We must put the right people in the right positions so they can perform at their best and the company can continue to succeed." As of Tuesday's close, Qualcomm rose 1.26%. So far in 2026, Qualcomm shares have risen only 4%, while the S&P 500 has risen more than 12% over the same period and the Philadelphia Semiconductor Index has risen nearly 60%.