Qualcomm Rumored to Lay Off Up to 20% of Chinese Workers, Controversy Surrounds Severance Pay

Qualcomm Reportedly Plans Job Cuts in China Amid Smartphone Slump

Qualcomm, one of the leading players in the smartphone chip industry, is reportedly preparing to lay off up to 20% of its workforce in China. The move comes as the demand for smartphones remains weak and Huawei’s latest high-end smartphone, the Mate 60 Pro, puts pressure on non-Apple chip suppliers like Qualcomm.

The Shanghai research and development center, which focuses on wireless-related businesses, is said to be the most affected by the layoffs. Regular employees will receive a severance pay of N+4, equivalent to an additional four months of salary based on seniority. Contracted workers, on the other hand, will receive N+7, which amounts to an additional seven months of salary based on seniority, with no upper limit.

Meanwhile, Qualcomm’s Taiwan branch is also set to downsize, targeting around 200 employees, approximately 10% of its Taiwanese workforce. The layoffs will predominantly affect research and development, product testing, and verification departments. The severance package for Taiwanese workers will be N+3, three months less than what their Chinese counterparts will receive. Existing employees in Taiwan could also face a 30% reduction in dividends for the year.

Market analysts attribute the layoffs to the company’s heavy reliance on smartphone chips and the Chinese market. With the global economy’s overall weakness and dampened consumer sentiment, coupled with the impact of Huawei’s new flagship device, the Mate 60 Pro, Qualcomm is expected to experience a decline in smartphone shipments.

These measures come as no surprise, as Qualcomm had already anticipated a challenging year and initiated a series of cost-cutting initiatives. In the first half of 2021, the US headquarters laid off around 400 employees. Moreover, the recent quarterly financial report revealed restructuring charges of $285 million in severance pay, with further layoffs considered in the future.

As Qualcomm braces for the continued downturn, the company’s actions highlight the harsh realities of the smartphone industry and the need to adapt to changing market conditions.

Qualcomm is rumored to lay off up to 20% of its Chinese workers, with a severance pay of up to N+7 (provided by local netizens)

[Adroddiad Gohebydd Hong Youfang/Hsinchu]Demand for smartphones remains weak. In particular, Huawei China’s new high-end smartphone, Mate 60 Pro, has affected mobile phone chips from non-Apple camps such as Qualcomm (Qualcomm). in the semiconductor industry will Qualcomm In China, 20% of workers will be laid off, and in Taiwan, about 10% of workers will be laid off, but the layoffs and severance pay have caused controversy .

Chinese media reported that Qualcomm’s Shanghai research and development center will lay off a large number of workers, reaching 20% ​​The center is mainly involved in wireless-related businesses. The layoff standard for layoffs is N+4 for regular employees , which means an additional 4 months of monthly salary based on seniority. , the severance pay of contracted workers will be N+7, which means an additional 7 months of monthly salary based on seniority, and there is no upper limit of 3 times.

Qualcomm Taiwan has also previously reported that it will lay off employees in October, including research and development, product testing and verification departments, it is estimated that there are about 200 people. The number of layoffs accounts for more than 10% of Taiwanese employees .Dividends for existing employees. the year can also be discounted by 30%. Although Qualcomm has not confirmed this, internal employees have spread the news, and it is said that Taiwan will provide N+3 severance pay for layoffs, and an additional three months of monthly salary based on seniority, which is lower than in China.

Market analysis indicates that Qualcomm’s main sources of revenue are smartphone chips and the Chinese market. Affected by the overall global economy and sluggish buying sentiment, along with the impact of China’s new high-end smartphone Huawei, Mate 60 Pro, it is expected. has a negative impact on Qualcomm from shipping smartphones.

Qualcomm has long expected that the market will be bad this year and its operations will decline. During the first half of the year, the US headquarters laid off about 400 people. In early August, Qualcomm also said publicly that it would actively take on costs. Qualcomm’s last quarter financial report also showed major changes Restructuring charges amounted to $285 million in severance pay, with more layoffs expected in the future.

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