US-based semiconductor company Qualcomm has started laying off employees in India as part of a global workforce restructuring exercise. The first round of job cuts began at its Bengaluru operations on November 9, with around 1,000 positions potentially at risk across the country, according to people familiar with the developments.
The layoffs are expected to extend to Qualcomm’s engineering and research facilities in Hyderabad, Delhi NCR and Chennai. The company has not officially confirmed the number of employees affected in India.
The restructuring could impact approximately 5-6% of Qualcomm’s estimated 20,000-strong Indian workforce. Senior engineers and employees with several years of experience are reportedly among those who have received termination notices.
Qualcomm Employees Offered Three Months’ Salary As Severance
Employees affected by the layoffs have reportedly been offered severance equivalent to three months’ salary, along with additional compensation linked to their length of service.
According to people familiar with the arrangements, employees who sign their exit documents within three days are being offered an additional month’s salary as an incentive for accepting the separation terms early.
The severance arrangements have not been officially confirmed by Qualcomm. The company has also not publicly disclosed the complete terms being offered to affected employees.
Layoffs Follow Global Workforce Restructuring Announcement
The India layoffs follow an internal communication issued by Qualcomm CEO Cristiano Amon on October 20. The company had announced plans for a global workforce reduction following its annual employee performance review process.
Qualcomm described the exercise as a performance-focused restructuring intended to strengthen accountability and align its workforce with changing business priorities.
However, the inclusion of experienced engineers has raised questions about whether the exercise also involves broader organisational restructuring and cost reduction.
Sources indicate that the selection process could involve individual performance ratings, team-level assessments and decisions by senior management, including business leaders based in the United States.
Some engineering teams reportedly facing reductions include radio frequency (RF), Bluetooth, Wi-Fi and global navigation satellite system (GNSS) functions.
Smartphone Chip Business Faces Growing Challenges
The layoffs come as Qualcomm faces pressure in its core smartphone chipset business. Smartphones remain the company’s largest revenue contributor, but slowing demand in the handset market is creating challenges for semiconductor manufacturers.
According to Faisal Kawoosa, founder and chief analyst at Techarc, India’s smartphone market is expected to decline by 26-28% in volume and 7-8% in value during 2026.
He noted that smartphones account for approximately 51% of Qualcomm’s revenue, leaving the company significantly exposed to developments in this market.
Qualcomm has also lost considerable smartphone market share in India to Taiwanese rival MediaTek.
Qualcomm Looks Beyond Smartphones For Future Growth
The company is attempting to diversify its business into artificial intelligence infrastructure, automotive technologies, connected devices and data-centre semiconductors.
Its automotive business has gained traction, but analysts believe these newer segments will take time to become significant revenue contributors.
Kawoosa estimates that automotive could account for 25-30% of Qualcomm’s revenue over the next three to five years. He also highlighted the need for the company to identify its next major growth driver beyond smartphones.
Summary
Qualcomm has begun layoffs in India, with approximately 1,000 jobs potentially at risk across Bengaluru, Hyderabad, Delhi NCR and Chennai. Affected employees have reportedly been offered three months’ salary, additional tenure-based compensation and an extra month’s salary for early acceptance. The restructuring comes amid smartphone market challenges as Qualcomm expands into automotive, AI and data-centre businesses.
Image Source