Qualcomm layoffs: What severance package will affected employees receive?

New Delhi: As Qualcomm began laying off employees in India as part of a global workforce restructuring, people are awaiting details of the severance package to be offered to affected employees. Reports suggest that it may include three months' salary, an additional amount based on the period of service, and salary for an extra month for early exit.

The exercise is expected to affect around 1,000 employees, or nearly 5-6 per cent of its workforce in the country, according to reports. Layoffs apparently began at Qualcomm's Bengaluru operations and primarily affected senior engineers and employees with several years of experience, reports said. The restructuring is expected to extend to the company's engineering and research centres in Hyderabad, Delhi NCR and Chennai in the coming days, they added.

What does the severance package include?

As per reports, the affected employees in India have been offered severance pay equivalent to three months' salary. Moreover, employees would receive another incentive linked to their years of employment with the company. An additional month's salary is also being offered to employees who sign their separation documents within three days.

The US technology corporation, however, has not publicly confirmed the severance arrangements. Thus, the final compensation and eligibility conditions may vary for individual employees.

Reason for layoffs

Qualcomm chief executive Cristiano Amon had announced a global workforce restructuring on October 20 to reduce headcount following its annual performance review process. Its global workforce, which currently stands at 52,000, is expected to be reduced by around 3,600 employees.

Although the company described the move as performance-based, several reports have emerged pointing to different reasons. Affected employees have alleged on social media that the decision is based on business needs rather than restructuring, while others have linked it to cost-cutting and artificial intelligence.

Employees may be selected based on individual performance ratings, team-level assessments and senior management opinions, including those of US-based business leaders, the reports said. Employees have also reported potential reductions across radio frequency (RF), Bluetooth, Wi-Fi and global navigation satellite system (GNSS) engineering teams.

With many senior and experienced engineers also affected, it is speculated that the job cuts have been triggered by cost reduction and organisational restructuring.

Shift in market

Qualcomm, which is said to generate a significant portion of its revenue through the smartphone market, is reportedly facing challenges. The company's chip business is under pressure, affecting its revenue, which has led the company to expand into other areas, including semiconductors for data centres, automotive technology, AI and connected devices.

Global tech layoffs are accelerating in 2026, with more than 80,000 jobs already cut in the first quarter and total losses likely to exceed 3 lakh this year, led by companies like Oracle, Amazon and Meta.

(With inputs from IANS)