Mobile chipmaking giant Qualcomm is preparing to lay off numerous employees following annual reviews, as announced by CEO Cristiano Amon in an internal memo. The performance-focused reductions aim to address recent financial shortfalls and weaker handset demand that caused quarterly revenue to decline. Although automotive chip revenue experienced significant growth, it was insufficient to offset the overall financial downturn ahead of the upcoming September earnings report.

Mobile chipmaking giant Qualcomm is preparing to lay off numerous employees following annual reviews, as announced by CEO Cristiano Amon in an internal memo. The performance-focused reductions aim to address recent financial shortfalls and weaker handset demand that caused quarterly revenue to decline. Although automotive chip revenue experienced significant growth, it was insufficient to offset the overall financial downturn ahead of the upcoming September earnings report.

Mobile chipmaking giant Qualcomm is preparing to lay off numerous employees following annual reviews, as announced by CEO Cristiano Amon in an internal memo. The performance-focused reductions aim to address recent financial shortfalls and weaker handset demand that caused quarterly revenue to decline. Although automotive chip revenue experienced significant growth, it was insufficient to offset the overall financial downturn ahead of the upcoming September earnings report.

In an exclusive, Reuters revealed that mobile chipmaking giant Qualcomm looks to lay off many roles following its annual employee reviews. The job cuts are part of a "performance-focused reduction", the report quoted CEO Cristiano Amon in a memo to staff. 

In the memo, the chief executive stated that Qualcomm had "consistently fallen short of expectations" and that the latest layoffs would be to help build "a stronger performance culture", as per Reuters.

The report did not mention the number of affected job roles. "As we have expanded the business, so have the competencies and skills we require," Amon stated in the memo, as per Reuters, "We must have the right people in the right roles so they can perform at their best and the company can continue to succeed."

Qualcomm’s latest reported quarterly results show that its expansion beyond smartphones has not yet insulated it from weaker handset demand. Revenue fell 4 per cent year-on-year to $9.95 billion in its fiscal third quarter ended June 28, 2026. Adjusted earnings per share declined 20 per cent to $2.21, compared with statutory earnings of $1.87 per share. Despite beating revenue street estimates, adjusted earnings narrowly missed the expected mark. 

Qualcomm’s diversification to auto chips seemed to have helped, with automotive revenue rising 61 per cent year-on-year. However, it barely made a dent in the overall revenue decline.

Qualcomm closed at $173.53 at the Nasdaq on Monday, up 0.83 per cent, from Friday’s close. But that recovery is meek compared to more than a 12 per cent one-month decline. The chipmaker is yet to post its latest September quarter results and is expected to do so by November first week.

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