Pending Qualcomm Layoffs Reflect Weak End Markets, Not Culture Building
Reuters is reporting that Qualcomm ($QCOM) is poised to embark upon a “performance-focused reduction” in headcount with notifications set to begin in November.
While Reuters reports these moves are “part of an effort to build ‘a stronger performance culture’ and address situations where the company ‘has consistently fallen short of expectations'”, the reality of the situation can be traced back to recent data from IDC and other research firms about the smartphone and PC markets.
According to the IDC Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments plunged a record 22.0% year-over-year in Q3 2026 to 255.3 million units due to the “AI-led memory and RAM crisis.”
Preliminary data from IDC finds worldwide PC shipments dropped 20.1% year-over-year in Q3 2026 to 62.7 million units.
With industry figures like those, odds are Qualcomm won’t be the only supplier to those end markets reducing headcount.