QUALCOMM has signalled substantial global job cuts in response to a marked slump in smartphone demand, according to a Reuters report cited by the site. The San Diego-based chipmaker informed staff that workforce reductions will begin in November, with the company currently employing around 52,000 people worldwide. While the exact headcount reduction remains undisclosed, affected employees are expected to receive formal notices within weeks.
The internal memo frames the move as “performance-based reductions” aimed at building a stronger meritocratic culture across engineering and related functions, and at realigning divisions that consistently miss targets.
The layoffs come amid two principal headwinds in the wider electronics market. First, higher component costs have driven up smartphone prices, contributing to a 20% year‑on‑year drop in global smartphone shipments in the third quarter of 2026 and pushing volumes back to 2012 levels.
Second, Qualcomm’s use of advanced manufacturing nodes by rivals such as TSMC—3nm and 2nm processes—has raised the cost of processors and pushed silicon bills of materials higher, dampening upgrade activity among budget and mid-tier users.
In response, Qualcomm has sought diversification beyond handsets into AI data centres and other products, including Snapdragon X laptops and the Dragonfly server processors, with management projecting non-smartphone revenue to exceed half of total revenue for the coming financial year. Investor sentiment remains cautious, with shares slipping modestly after the staffing news.