Sign in Subscribe
Economy

Qualcomm plans global layoffs starting in November, blaming workers' performance

The chipmaker hasn't said how many jobs. Here's how the performance label can affect WARN notice, unemployment and severance.

Qualcomm plans global layoffs starting in November, blaming workers' performance
Stock photo. Photo by Laura Ockel on Unsplash

Qualcomm, the San Diego chipmaker, is preparing to cut jobs worldwide, and it is calling the cuts a "performance-focused reduction." CEO Cristiano Amon announced the plan to employees in an internal memo on Monday, Oct. 19, Reuters reported Tuesday, Oct. 20. Notices go out starting in November, after the company's annual performance reviews.

The memo does not say how many jobs will go, and Reuters could not determine the scale. Qualcomm had about 52,000 employees at the end of its 2025 fiscal year, according to Reuters, citing the company's annual report. Qualcomm did not respond to Reuters' request for comment, and we found no public statement from the company.

Reviews, then pink slips

Amon wrote that the cuts aim to build "a stronger performance culture" and target performance that has "consistently fallen short of expectations," according to Reuters. Business priorities, organizational needs, and each person's skills will also count. "As we have expanded the business, so have the competencies and skills we require," Amon wrote. "We must have the right people in the right roles so they can perform at their best and the company can continue to succeed."

Business is also soft. Rising memory chip prices have hurt phone demand, and Qualcomm's stock was up about 1.5% this year as of Reuters' report, while the Philadelphia Semiconductor Index had gained nearly 60%. In July, Qualcomm forecast quarterly profit below estimates and said Apple revenue would fall faster than expected.

This isn't Qualcomm's first round. In October 2023, it told California's Employment Development Department it would cut 1,258 jobs in San Diego and Santa Clara, Bloomberg reported.

Why the word "performance" is doing heavy lifting

The label can change what the law requires and what a worker walks away with.

Advance notice. The federal WARN Act requires employers with 100 or more employees to give 60 days' written notice before a "mass layoff," which generally means 500 or more job losses at one site, or 50 or more that make up at least a third of that site's workforce, within 30 days. But the law's count of job losses excludes a "discharge for cause", meaning a firing for something the worker did. California's own WARN law requires 60 days' notice when a site with 75 or more employees lays off 50 or more people in 30 days, according to the state Employment Development Department. It defines a layoff as a separation "for lack of funds or lack of work." A company that frames cuts around individual performance could argue fewer people count toward either threshold. A label alone doesn't settle that question, and a worker who loses a job without required notice may be owed up to 60 days of back pay and benefits.

Unemployment. In California, being bad at a job is generally not a reason to deny benefits. "If you are fired, your employer must prove there was misconduct," the EDD says. The California Supreme Court held in Amador v. Unemployment Insurance Appeals Board (1984) that "mere inefficiency, unsatisfactory conduct, failure in good performance as the result of inability or incapacity" isn't misconduct. Other states set their own rules. Either way, file right away.

Severance and your next job. A performance label can shape how a severance offer is pitched and what HR tells the next employer who calls. Both can be negotiated before you sign.

If your badge stops working in November

  • Save your reviews now. Keep personal copies of past reviews, raises, and awards, but not confidential company files. A sudden "underperformer" tag after years of good reviews is evidence. Our guide to layoff warning signs covers what else to gather.
  • Don't sign on the spot. California doesn't require severance in most cases, so any offer is a trade for your right to sue, and first offers are often negotiable. Read the severance FAQ on deadlines and unemployment.
  • Ask what they'll say about you. Before you sign, ask for a written agreement on how your exit will be described and how reference checks will be handled, and watch for one-sided non-disparagement clauses.
  • If you're 40 or older, ask for the list. When a release of age claims is part of a group termination program, federal law gives you 45 days to consider it and requires the company to disclose the job titles and ages of the people selected and not selected. That list can show whether "performance" landed hardest on older workers. More in severance.law's guide for workers over 40.

Kroger said in October it would cut 3,000 corporate jobs as it leans on AI. Qualcomm's version puts the reason on workers' own records. If you're notified in November, ask in writing for the reason, your end date, and the severance terms, then take your time before signing.

Sources

Read next

Comments ()