Qualcomm layoffs: The financial cushion employees may get after job cuts

Qualcomm's ongoing workforce reduction across its global operations, including India and the US, has brought attention to the severance benefits being offered to employees leaving the company.

The job cuts follow an internal communication from CEO Cristiano Amon, who described the exercise as a "performance-focused" workforce reduction. Although Qualcomm has not disclosed the total number of employees affected, reports indicate that some employees in India have already received termination notices.

For those affected, employee accounts shared on Reddit suggest that the severance package could include several components, depending on their length of service and the terms of their individual agreements.

According to these accounts, employees may receive two weeks of gross salary as a base severance payment, along with an additional two weeks' salary for every completed year of service. Pro-rated compensation may also apply to incomplete years of employment.

The reported benefits could further include a lump-sum payment towards health coverage and an additional month's salary for employees who sign their severance agreements within a specified deadline.

Extra payment for early signing

Some employees have claimed that signing the severance agreement within two days could make them eligible for an additional month's salary. However, the deadline and eligibility conditions may vary across individual agreements.

The reported structure means employees with longer tenures could receive considerably higher severance compensation.

However, employees have been advised to examine the terms carefully before accepting the offer. Accounts shared online have also raised concerns about clauses that could require employees to waive certain rights to pursue employment-related claims against the company.

The exact benefits and conditions will depend on the severance agreement issued to each employee. The details shared by individuals online have not been independently confirmed by Qualcomm.

Why is Qualcomm reducing its workforce?

The restructuring comes amid pressure on Qualcomm's smartphone chip business. Weak demand for consumer electronics and rising memory prices have affected smartphone sales, adding to challenges in the industry.

The company has also flagged faster-than-expected declines in revenue from Apple products, another factor weighing on its business outlook.