Qualcomm Shifts Focus to AI and Data Centres Amid Reported Layoff Plans

US-based semiconductor company Qualcomm is reportedly planning to lay off some employees across its global workforce following its annual performance reviews. According to a Reuters report, the company has described the move as a “performance-focused reduction.” Qualcomm CEO Cristiano Amon has reportedly informed employees through an internal memo that notifications regarding the job cuts will begin in November. However, the memo did not specify how many employees would be affected. Qualcomm had approximately 52,000 employees worldwide as of September last year.

Amon reportedly stated that the decision would depend on the company’s business priorities, organisational requirements, and the skills and expertise needed for future growth. The move comes amid challenges in consumer electronics demand, partly due to rising memory prices. Qualcomm, one of the world’s largest smartphone chipmakers, has also faced pressure from changing market conditions and expectations for revenue from Apple-related products. At the same time, the company is expanding into AI data centres and other non-smartphone businesses, which it expects to become increasingly important to its growth by fiscal 2027. The planned workforce reduction reflects its reported focus on organisational efficiency and performance.