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.

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Posted by Chris Versace

With 30 years of cross-industry experience, Chris Versace brings his thematic investing lens to TheStreet Pro Portfolio (formerly Action Alerts PLUS) each day as lead portfolio manager. His daily insights, analysis, and recommendations provide the foundation for TheStreet's Pro Portfolio. Versace began his career in equity research before founding Versace Management in 2005. He joined TheStreet team in 2011 as a Real Money contributor before becoming portfolio manager of Action Alerts PLUS in 2021. He holds an MBA from Fordham Gabelli School of Business and has co-authored a book called “Cocktail Investing - Distilling Everyday Noise into Clear Investing Signals for Better Returns.” With a passion for teaching others about investing, Versace spent 9 years as an Assistant Professor of Finance at NJCU School of Business. When he’s not contributing to TheStreet’s premium services, he can be found speaking at industry conferences or at a Bruce Springsteen concert (he’s seen him 50 times and counting!).

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