US-based semiconductor giant Qualcomm has begun laying off workforce as part of an organisational restructuring across its global operations, including India and California. The reduction in staff follows an internal communication from CEO Cristiano Amon chowking out a performance-focused workforce review linked to the company's annual employee evaluation process.
Reports suggested that some employees in India have already received termination notices, while further disclosures are expected in California under the state's Worker Adjustment and Retraining Notification (WARN) Act, reported Yahoo.
Although earlier estimates indicated that up to 1,000 employees in India could be affected, reports indicate that the actual number may be significantly lower. Qualcomm has not publicly confirmed the final number of job cuts.
The restructuring comes amid mounting pressure on the company's core smartphone business, with weaker handset demand and rising memory component prices affecting the broader consumer electronics sector.
Qualcomm reportedly recorded a 26% decline in handset revenue, despite quarterly revenue of $10.44 billion and earnings per share of $2.17. The company is increasingly looking to expand its business by investing into artificial intelligence infrastructure, data centres, automotive technology and other non-handset markets.
However, employee accounts shared on Reddit have raised concerns about the way the layoffs are being communicated and implemented. Some affected workers described, "LWD is the end of Jan and severance is based on no of years worked in Qualcomm+ 3 months salary. Along with this if I sign in 2 days 1 month more."
One employee said, "Directly had a call with the Director and no HR was mentioned initially but in the video call he was there. The director just read from the document and did not have any insight on my questions as this year my performance had been very good and my promotion was pending as conveyed by my manager."
Got laid off today
by u/Normal-Fishing6174 in qualcomm
According to employee-shared severance details, compensation may include two weeks of gross salary, an additional two weeks of pay for every year of service, prorated for partial years, and a lump-sum health coverage payment.
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Some employees also reported receiving an additional month's salary for signing the severance agreement within two days. These terms may vary depending on individual agreements and applicable employment laws.
I was laid off today [US]
by u/Constant-Room3489 in qualcomm
Employees also highlighted concerns about clauses in the agreements that could waive certain rights to pursue employment-related claims against the company.
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