Qualcomm (NASDAQ: QCOM) is preparing a new round of global job cuts, with CEO Cristiano Amon telling employees that notifications are expected to begin in November.

Amon described the reductions as “performance-focused,” tied to annual employee reviews and a broader push toward what he called a “stronger performance culture.”

In an internal memo, Amon said the company has “consistently fallen short of expectations,” signaling that the cuts are aimed at restructuring talent across the organization.

The memo outlined that business priorities, organizational needs, skills, and expertise would all factor into decisions about which roles would be affected.

“As we have expanded the business, so have the competencies and skills we require,” Amon wrote, adding, “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 memo did not specify how many positions would be eliminated, and Qualcomm did not immediately respond to a request for comment on the matter.

As of September 2025, Qualcomm employed approximately 52,000 people globally, giving the potential scale of the reductions significant weight.

The layoff announcement comes against a difficult financial backdrop, with the company reporting $9.9 billion in revenue for the third quarter of fiscal 2026, a 4% decline year-over-year.

Handset revenue, still the company’s core business, fell 20% year-over-year, intensifying pressure on Qualcomm to accelerate its diversification strategy across new markets.

The company is targeting growth in data center chips, automotive systems, and connected devices, with expectations that these segments will offset the smartphone slowdown by the 2027 financial year.

Qualcomm’s challenge now lies in executing that expansion while simultaneously tightening its workforce and managing investor expectations around when new business lines will contribute meaningfully to earnings.

Wall Street remains broadly constructive on the stock, with 34 analysts assigning a consensus “Moderate Buy” rating and an average price target of $199.38, implying roughly 14% upside from current levels.

Whether a leaner workforce accelerates the company’s pivot or reflects deeper structural pressure remains the central question facing investors and analysts heading into the next fiscal year.