Qualcomm CEO Cristiano Amon informed employees in an internal memo reviewed by Reuters on Monday that the company will begin notifying affected workers in November. These layoffs are part of a 'performance-oriented reduction' following annual employee reviews.
The reductions are being made as part of efforts to foster a 'stronger culture of performance' and address issues where the company has 'consistently failed to meet expectations,' Amon noted.
The memo did not specify how many employees would be affected, and Reuters could not immediately determine the scale of these cuts. As of September last year, Qualcomm had approximately 52,000 employees worldwide, most of whom were full-time. The company's fiscal year typically ends at the end of September.
Qualcomm, one of the world's largest smartphone chip manufacturers, has faced a slowdown in consumer electronics sales this year as rising memory prices put pressure on demand in key markets.
In its latest earnings report at the end of July, Qualcomm forecasted quarterly profits below expectations and stated that revenue from Apple products would decline faster than anticipated. However, the company signaled that growth in data center segments and other non-phone areas would offset lost revenue by the 2027 fiscal year.
The company expects that by the 2027 fiscal year, the majority of its chip sales will come from non-smartphone businesses due to expansion into the fast-growing AI data center market. Amon added in the memo that business priorities, organizational needs, as well as skills and expertise will be considered when making layoff decisions. He wrote: 'As we have expanded our business, the competencies and skills we require have also expanded. We must have the right people in the right places so they can perform at their best, and the company can continue to succeed.'