IBM is set to reduce its workforce by about 9,000 employees in the United States as part of its ongoing corporate restructuring efforts. This latest phase of restructuring will affect roughly a quarter of the personnel involved in the company’s Cloud Classic division, as reported by The Register.
Factors Contributing to Significant IBM LayoffsÂ
According to the report, a key factor driving the layoffs at IBM Cloud Classic, the infrastructure-as-a-service (IaaS) division established following IBM’s acquisition of SoftLayer in 2013, is the company’s strategy to shift jobs to India “as much as possible.” The layoffs may affect various locations, including Texas, California, New York City and State, Dallas, Texas, and Raleigh, North Carolina. IBM maintains a substantial presence in Indian cities such as Pune, Bengaluru, Chennai, and Hyderabad.
IBM has not made an official announcement regarding layoffs; however, the company has recently indicated its intention to reduce its workforce. In January, Chief Financial Officer James Kavanaugh mentioned that he expected the ‘workforce rebalancing’ to be an ongoing process, reflecting trends from recent years.
Employees who have avoided layoffs in the latest round now face new expectations from the company. By the end of April, staff members are expected to work from an IBM office at least three days a week, according to a report. A source familiar with the situation noted,
“Management is tracking badge swipes and is only permitting medical exemptions, which are not well-received by executives and are even discouraged by middle management.” The report also stated, “Exact figures are being kept confidential, but they are in the thousands.”
Recent reports indicate that several prominent technology firms, such as HP, Meta, and Amazon, have been considering substantial layoffs in recent months as they continue to implement their restructuring strategies.