New Delhi: Qualcomm has begun implementing workforce reductions across its global operations, including India, with employees reportedly receiving termination notices as part of the company’s restructuring exercise. The job cuts have drawn attention to the severance benefits being offered to affected employees, particularly those working at the company’s Indian offices.

According to employee accounts cited, the reported severance package may include two weeks’ gross salary as a base payment, an additional two weeks’ salary for every completed year of service, compensation for incomplete years and a lump-sum payment towards health coverage.

Employees who sign their exit agreements within a specified deadline may also receive an additional month’s salary. However, the exact benefits and conditions may vary depending on individual agreements.

What is Qualcomm offering as severance?

Details shared by employees on Reddit suggest that the severance arrangement could include several components.

The reported package includes:

  • Base severance: Two weeks of gross salary.
  • Additional compensation: Two weeks’ salary for every year of service.
  • Incomplete service period: Pro-rated compensation for employees who have not completed a full year.
  • Health coverage: A lump-sum payment towards health insurance or medical coverage.
  • Early-signing incentive: An additional month’s salary for employees who sign their severance agreements within the specified deadline.

The additional payment linked to years of service means employees who have worked at Qualcomm for a longer period could receive a higher overall payout.

However, these details are based on accounts shared by affected employees and have not been independently confirmed as a uniform company-wide policy.

Employees may receive an extra month’s salary for early signing

One of the notable features of the reported severance arrangement is an additional month’s salary for employees who agree to the exit terms within a short period.

Some employee accounts suggest that the deadline could be as short as two days. Other reports have referred to a three-day window, indicating that the timeline may differ across individual agreements.

Employees have also raised questions about clauses in the exit documents that could involve waiving certain rights to pursue employment-related claims against the company.

Affected workers are therefore advised to carefully examine the complete agreement, including payment calculations, conditions, release clauses and deadlines, before signing. The written terms provided to each employee will determine the actual benefits available.

Around 1,000 Indian jobs were initially estimated to be at risk

Qualcomm has not officially disclosed the final number of employees affected by the restructuring. Earlier estimates suggested that around 1,000 or more jobs in India could be at risk.

The first reported round of job cuts began at the company’s Bengaluru facility, with the exercise expected to take place in phases across its operations.

India is an important engineering and research centre for Qualcomm, with facilities in Bengaluru, Hyderabad, Delhi-NCR and Chennai. The company reportedly employs around 20,000 people in India.

A global reduction affecting approximately seven per cent of Qualcomm’s workforce was cited in earlier reports. However, the actual number of Indian employees losing their jobs remains unconfirmed.

Why is Qualcomm reducing its workforce?

The restructuring follows an internal communication from Qualcomm CEO Cristiano Amon in October. He described the exercise as a performance-focused workforce reduction, saying the company needed to align its workforce with changing business priorities and future requirements.

According to a Reuters report, the company planned to assess organisational needs, employee skills and expertise while deciding on the reductions.

Qualcomm is also facing challenges in its smartphone chip business. Weak consumer electronics demand and rising memory prices have affected the smartphone market, while the company has indicated that revenue from Apple-related products could decline faster than previously expected.

At the same time, Qualcomm is expanding into other technology segments, including artificial intelligence infrastructure, data centres and automotive technology. The company aims to reduce its dependence on the traditional smartphone market and increase contributions from businesses beyond handset chips.

What affected employees should check before accepting the offer

With the reported severance package involving multiple payment components, employees should verify the calculations and conditions in their individual exit documents.

Important details include the salary amount used for calculating severance, the number of eligible service years, pro-rated payments, health coverage benefits and the deadline for accepting the agreement.

Employees should also understand any clauses relating to the waiver or release of legal claims before signing. The reported package should not be treated as a guaranteed entitlement for every affected employee, as the final terms may vary.

Qualcomm’s job cuts have created uncertainty among its workforce in India, particularly in Bengaluru, where the company has significant engineering operations. While the reported severance benefits could provide financial support to affected employees, the final payout will depend on the terms of their individual agreements.