Qualcomm Plans Global Job Cuts as It Shifts Focus Beyond Smartphones

Qualcomm is preparing to reduce its global workforce from November as the semiconductor company responds to challenges in its smartphone chip business and expands into new growth areas, including data centres, automotive technology and connected devices.

The company has not disclosed the number of employees who could be affected. The planned reductions follow its annual performance review process and form part of a broader restructuring effort to align its workforce with changing business priorities.

According to Reuters, Chief Executive Officer Cristiano Amon informed employees in an internal memo that the restructuring aims to reinforce a performance-driven culture and ensure the company has the skills and organisational structure required to support its evolving business strategy.

Qualcomm will evaluate roles based on business priorities, organisational needs and employee skills before determining the extent of the workforce reductions.

The planned cuts come amid pressure on the smartphone market, where weaker consumer electronics demand and rising component costs have affected the industry. Qualcomm has also faced concerns about its revenue outlook, including expectations of a faster-than-anticipated decline in revenue associated with Apple products.

To reduce its reliance on the smartphone market, Qualcomm is expanding its presence in data centre chips, automotive systems and connected devices. The company expects these businesses to contribute to its longer-term growth as it diversifies its revenue sources.

With approximately 52,000 employees worldwide, Qualcomm faces the challenge of aligning its workforce with these emerging opportunities while managing near-term business pressures. The restructuring reflects the broader adjustments taking place across the semiconductor industry as companies reassess investment priorities and future skill requirements.

For HR leaders, Qualcomm’s workforce plans highlight the growing role of strategic workforce planning in technology businesses. As companies expand into artificial intelligence infrastructure, automotive technology and other specialised markets, they must identify critical skills, retain key talent and assess how existing roles align with future business needs.

The effectiveness of Qualcomm’s restructuring will depend on how well it balances cost management with the recruitment, development and retention of talent needed to support its diversification strategy.