By Qualcomm has begun layoffs in India as part of a global workforce restructuring programme, with around 1,000 employees expected to be affected, according to ETHRWorld citing IANS. The cuts reportedly started at the company’s Bengaluru operations and are expected to extend to engineering and research centres in Hyderabad, Delhi NCR, and Chennai in the coming days.
The affected employees are primarily senior engineers and staff with several years of experience, including those working on radio frequency, Bluetooth, Wi-Fi, and global navigation satellite system teams. Qualcomm CEO Cristiano Amon announced the global restructuring on October 20. ETHRWorld reports that severance pay is equivalent to three months’ salary, with additional compensation linked to tenure. Employees who sign exit documents within three days are reportedly offered an additional month’s salary as an incentive. Qualcomm has not publicly confirmed the severance arrangements.
What the restructuring means for India operations
The layoffs represent nearly 5 to 6 per cent of Qualcomm’s workforce in India. The company has described the exercise as performance-focused, intended to strengthen accountability and align its workforce with evolving business priorities, according to the ETHRWorld report. However, concerns have been raised in India that the objective extends to organisational rationalisation and cost-cutting measures.
The selection process may use individual performance ratings, team-level assessments, and senior management opinions, including from US-based business leaders. This creates a particular challenge for Indian HR teams managing exits across multiple sites. Bengaluru is the first location affected, but teams in Hyderabad, Delhi NCR, and Chennai should prepare for similar processes in the near term.
Severance and exit documentation timelines
The reported severance structure has a notable feature: an additional month’s salary for employees who sign exit documents within three days. This accelerated signing window places pressure on employees to decide quickly, often before they have fully assessed their legal position or negotiated alternative terms.
For HR and payroll teams in India, this means preparing final settlements that include:
- Three months’ salary as base severance
- Tenure-linked additional compensation
- The early-signing incentive where applicable
- Statutory payments such as gratuity, notice pay, and leave encashment
Indian employers must ensure that any separation agreement complies with the Industrial Disputes Act and relevant state Shops and Establishments Acts. Retrenchment provisions under the Industrial Disputes Act apply to workmen categories, while senior engineers may fall outside that definition depending on their duties and salary levels. Employers should confirm the correct classification for each affected employee before finalising exit terms.
Payroll and compliance steps for multi-city exits
When layoffs span Bengaluru, Hyderabad, Delhi NCR, and Chennai, payroll teams face state-specific variations in professional tax rules, labour welfare fund applicability, and gratuity calculation thresholds. Karnataka, Telangana, Delhi, and Tamil Nadu each have distinct compliance requirements.
A practical sequence for payroll teams includes:
- Confirming the last working day and notice period treatment for each employee
- Calculating full and final settlement including severance, gratuity, leave encashment, and any bonus or variable pay
- Issuing Form 16 and reliving letters promptly
- Ensuring tax deducted at source on severance payments follows the applicable income tax treatment
Severance payments in India are generally taxable as salary income unless they qualify as retrenchment compensation under section 10(10B) of the Income Tax Act, which has specific conditions. Payroll teams should verify the correct treatment for each payment rather than applying a blanket rule.
Broader context for HR leaders
The Qualcomm cuts sit within a wider pattern of technology sector layoffs. More than 80,000 jobs were cut globally in the first quarter of 2026, with total losses likely to exceed 300,000 this year, according to the ETHRWorld report. Oracle, Amazon, and Meta are cited among other companies undertaking similar reductions.
Qualcomm’s biggest revenue-contributing sector, the global smartphone market, has been under pressure. The company is diversifying into artificial intelligence, automotive technologies, connected devices, and data-centre semiconductors. For HR leaders in India, this signals that restructuring is not a one-off event but part of a strategic shift. Teams that support engineering functions tied to legacy products may face continued uncertainty, while roles aligned with newer business lines may see investment.
HR teams in other technology companies should review their own workforce planning assumptions. The scale of cuts across the sector suggests that performance-based selection criteria, accelerated exit timelines, and tenure-linked severance structures are becoming more common. Preparing documentation templates, payroll workflows, and compliance checklists before any announcement reduces the risk of errors during a high-pressure exit process.
Sources: ETHRWorld
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