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According to Reuters, the job cuts come as Qualcomm faces challenges in its smartphone chip business and looks to expand into other areas, including data centres, automotive technology and connected devices. The company has also forecast lower-than-expected profits and expects revenue from Apple products to decline faster than anticipated.Why is Qualcomm cutting jobs?

In the memo reviewed by Reuters, Amon said the cuts were intended to build a stronger performance culture and address situations where employees had consistently fallen short of expectations.

Qualcomm will also consider its business priorities, organisational needs and employees' skills and expertise when deciding which roles will be affected.

"As we have expanded the business, so have the competencies and skills we require," Amon wrote in the memo. "We must have the right people in the right roles so they can perform at their best and the company can continue to succeed."

The company has not shared details about the number of jobs it plans to cut or the teams that could be affected. According to the report, employees are expected to start receiving notifications in November.Smartphone chip business faces challenges

The company's financial outlook has also raised concerns. In its July earnings report, Qualcomm forecast quarterly profit below analysts' expectations. It also said revenue from Apple products would fall faster than previously expected.

However, Qualcomm is looking to grow beyond smartphones. The company expects its data centre, automotive and other non-handset businesses to grow enough to offset the expected decline in Apple-related revenue by the 2027 financial year.Qualcomm looks beyond smartphones

Qualcomm is also reportedly planning to expand into areas such as AI data centres, automotive technology and connected devices as it looks to rely less on the smartphone market. The company expects most of its chip sales to come from businesses outside smartphones in the 2027 financial year.

The company expects most of its chip sales to come from businesses outside smartphones in the 2027 financial year. As its business expands, Amon said Qualcomm needs to ensure that its workforce has the right skills and expertise to meet its changing requirements.

Qualcomm has not disclosed how many employees will lose their jobs or which teams and locations will be affected. The company had around 52,000 employees worldwide as of September 2025.

According to Reuters, affected employees are expected to start receiving notifications in November as Qualcomm reshapes its workforce to meet changing business priorities.- Ends

Divya enjoys making sense of the ever-evolving worlds of tech and AI. From decoding specifications and testing the latest gadgets to exploring how technology shapes the way we live, work and connect, she believes there is always more to a story than what meets the eye. Away from the screen, she is probably brewing her next cup of coffee, thinking about her next meal or overthinking just about everything else.