Qualcomm Incorporated (QCOM) is reportedly getting ready to hand out some unpleasant news alongside its annual performance reviews. The semiconductor company is preparing job cuts across the globe, a move it frames as strengthening its performance culture while smartphone demand keeps cooling off.

According to Reuters, CEO Cristiano Amon broke the news to employees through an internal memo on Monday, with notifications set to start rolling out in November. The company hasn't said how many people will be affected.

For context on the scale: Qualcomm employed nearly 52,000 people globally as of September 2025. Amon said the company will weigh business priorities, organizational requirements, and employees' skills and expertise when deciding where the reductions land.

The Real Story Is The Pivot Away From Phones

The restructuring isn't happening in a vacuum. Qualcomm has been working to diversify its revenue base by accelerating AI data-center and other non-handset businesses, including automotive, IoT and AI-related applications.

The numbers behind that pivot are striking. Qualcomm expects non-handset revenue growth to accelerate from 24% in 2026 to more than 60% in 2027, as the smartphone market continues to struggle. The company also raised its fiscal year 2029 non-handset revenue target from $22 billion to $40 billion.

On its latest earnings call in July, Qualcomm pointed to rising memory prices and supply constraints as factors weighing on smartphone demand.

There's another headwind worth flagging: Qualcomm expects an acceleration in the step-down of Apple Inc. (AAPL) product revenues starting in the fourth fiscal quarter. Apple has been building its own modem chips, and that transition matters for Qualcomm's bottom line.

The data center is where Qualcomm sees its biggest growth opportunity, forecasting revenue of $5 billion in 2027 and $15 billion in 2029.

What The Charts Say

Qualcomm is trading 4% below its 20-day SMA ($181.45) and 4.6% below its 100-day SMA ($182.76), but still 2.9% above its 200-day SMA ($169.39).

The 20-day SMA remains above the 50-day SMA, which is a bullish alignment. The relative strength index (RSI) stood at 46.03, indicating neutral momentum.

The golden cross in September, when the 50-day moved above the 200-day, still argues the bigger picture can stay constructive. But the more recent swing low in August is a reminder that downside air pockets have shown up quickly when support gives way.

Key resistance stands at $206, while support is near $156.

Earnings Are Right Around The Corner

Qualcomm is scheduled to report its next quarterly results on Nov. 4, 2026, just as those layoff notifications begin.

Analysts expect earnings of $2.16 per share, compared with $3 a year earlier. Revenue is projected at $10.11 billion, down from $11.27 billion. The stock trades at a price-to-earnings ratio of 19.8.

Qualcomm stock carries a Hold rating with an average price forecast of $202.32. Recent analyst moves include:

• TD Cowen: Buy (Raises Target to $200.00) (Oct. 19)
• Piper Sandler: Initiated with Neutral (Target $190.00) (Sept. 10)
• RBC Capital: Sector Perform (Raises Target to $180.00) (Sept. 9)

Where The Stock Stands

QCOM Price Action: Qualcomm shares were up 0.53% at $174.44 at the time of publication on Tuesday, according to market data.