Qualcomm begins India layoffs, around 1,000 jobs at risk
What's the story
US-based chipmaker Qualcomm has started laying off employees in India as part of a global workforce restructuring. The first round of job cuts was initiated at the company's Bengaluru facility on Monday. The move comes after similar layoffs were reported in the US and is likely to be implemented in phases across its operations.
Job cuts
Job cuts in India likely to be over 1,000
The global restructuring is likely to impact nearly 7% of Qualcomm's total workforce, which stands at some 52,000 employees.
Since India accounts for a significant portion of Qualcomm's workforce with around 20,000 employees, the country could see job losses in the range of 1,000 or slightly more if cuts are made in a similar proportion.
Impact on staff
Layoffs broad-based, impacting both senior engineers and recent hires
The ongoing restructuring is said to be broad-based, impacting both senior engineers and recently hired employees.
Some of the affected employees have claimed they were not given any prior performance-related feedback, even though the company has described this exercise as performance-driven.
Qualcomm CEO Cristiano Amon had announced these plans in an internal memo last month.
Compensation details
Employees laid off given severance packages
Employees who have been laid off have been given severance packages equivalent to three months' pay, depending on their tenure.
Those who sign their relieving documents within three days are being given an additional month's salary.
Another round of layoffs is likely in January, hinting that the workforce reduction process could continue beyond this initial phase.
Business hurdles
Qualcomm's restructuring amid challenges in smartphone chip business
The restructuring comes as Qualcomm faces challenges in its smartphone chip business.
Despite better-than-expected quarterly results last week, the company's revenue guidance missed market expectations due to concerns over weak demand for smartphone processors.
Rising memory prices are also putting pressure on consumer electronics demand, creating an uncertain near-term outlook for the broader smartphone industry.