Chipmaker Qualcomm has reportedly initiated a global round of layoffs, with estimates suggesting that around 7% of its global workforce of 52,000 may be affected. In India, about 1,000 jobs could be impacted, according to a report from Financial Express. The company, which has approximately 20,000 employees across facilities in Bengaluru, Hyderabad, Delhi NCR, and Chennai, has not made any official announcements regarding these layoffs.
Qualcomm employees have shared details about the severance package on Reddit. One user claimed to have been laid off and reported receiving a severance package that included three months' salary plus an additional month for every year served at the company. The user also mentioned that Qualcomm offered an extra month of pay if they signed the layoff papers within a couple of days.
The decision to lay off workers is said to be based on business needs rather than performance, according to the affected employees' managers. This move comes after Qualcomm's CEO, Cristiano Amon, informed employees last month that the company would undertake a "performance-focused reduction" worldwide following its annual reviews, with notifications beginning in November. The job cuts are reportedly due to challenges faced by the smartphone chip business, with handset revenue declining 25% in the latest quarter.
This is not an isolated incident in the tech sector. Earlier this month, Canva laid off 1,271 employees globally, while Twitter co-founder Jack Dorsey's Block reportedly cut jobs and offered a $5,000 payment to laid-off employees in addition to their severance salary. According to Layoffs.fyi, over 1,42,000 tech roles have been eliminated this year across 350 companies. However, some companies are also offering voluntary exits, with Microsoft, Google, and Meta reportedly making such offers to thousands of employees.