Qualcomm is initiating a global workforce reduction focused on employees who have consistently failed to meet performance expectations. The company, which employed approximately 52,000 people at the end of its 2025 fiscal year, has not disclosed the specific number of affected roles or the departments involved in the cuts.
The decision follows a challenging financial period, with third-quarter 2026 results showing a 4% year-on-year revenue decline and a 25% drop in net income. The firm's core handset business saw revenue fall by 20% over the same period. Additionally, Qualcomm reported $97 million in restructuring charges related to severance during the first nine months of its fiscal year.
Qualcomm is currently shifting its strategic focus toward AI infrastructure, data center silicon, automotive platforms, and edge computing. This pivot aims to offset revenue losses in the handset market, with the company projecting that growth in its data center business will compensate for lost revenue by fiscal year 2027. In October 2025, the firm introduced its AI200 and AI250 inference accelerators.
The company's shares have increased by only 1.5% in 2026, lagging behind the Philadelphia Semiconductor Index, which grew by nearly 60%. Qualcomm intends to use this performance-based restructuring to retain essential engineering talent for its new strategic priorities while eliminating redundant roles and teams that no longer align with its long-term objectives.
