Qualcomm Layoffs: US-based chipmaker Qualcomm has started laying off employees in India as part of a global workforce restructuring that could put around 1,000 or more jobs in the country at risk. The
first round of job cuts began at the company’s Bengaluru facility on Monday, following layoffs in the US, with the exercise expected to be rolled out in phases across its operations.
According to a Financial Express report, the global restructuring could affect nearly 7% of Qualcomm’s total workforce of around 52,000 employees. With the company employing about 20,000 people in India, the country could see around 1,000 job losses or slightly more if cuts are implemented in a similar proportion.
“At a similar ratio, layoffs in India can be estimated at around 1,000 employees or a little higher than that,” Pareekh Jain, CEO and lead analyst at EIIRTrend, told Financial Express.
The report added that another round of layoffs could take place in January, indicating that the workforce reduction may extend beyond the ongoing exercise.
The job cuts are particularly significant for India’s technology sector, given Qualcomm’s extensive engineering and research and development (R&D) operations in the country. India represents the company’s largest engineering base outside the US, with major facilities in Bengaluru, Hyderabad, Delhi NCR and Chennai.
The ongoing restructuring is understood to be broad-based, with both senior engineers and recently hired employees reportedly affected. Some employees who have been asked to leave have claimed that they did not receive any prior performance-related feedback, despite the company positioning the exercise as performance-driven, the Financial Express report said.
Qualcomm CEO Cristiano Amon had communicated the restructuring plans to employees through an internal memo in October. According to a Reuters report, Amon said the workforce reduction would take place in November, following the company’s annual employee reviews, as part of an effort to strengthen its performance culture.
Qualcomm has not officially commented on the layoffs in India. An email sent to the company seeking its response had not received a reply at the time of publication, according to Financial Express.
Employees affected by the layoffs have reportedly been offered severance packages equivalent to three months’ salary, depending on their tenure. Those who sign their relieving documents within three days are being offered an additional month’s salary, the report added.
Why Is Qualcomm Laying Off Employees?
The workforce restructuring comes against the backdrop of growing challenges in Qualcomm’s smartphone chip business. Although the company reported better-than-expected quarterly results last week, its revenue guidance fell short of market expectations, reflecting concerns over subdued demand for smartphone processors.
Rising memory prices are also adding to the pressure on consumer electronics demand, creating an uncertain near-term outlook for the broader smartphone industry.
The restructuring, therefore, comes as Qualcomm looks to streamline its workforce and reinforce performance standards while navigating a more challenging business environment.
