In a surprising turn of events, technology giant IBM has quietly initiated a significant round of layoffs, impacting thousands of employees across its global workforce.
The company’s attempt to keep this restructuring under wraps has raised eyebrows and fueled speculation.
Silent Layoffs at IBM
Reports suggest that IBM has been systematically letting go of employees, with a particular focus on senior-level programmers, sales professionals, and support staff.
Unlike traditional layoffs, this recent downsizing was conducted in secret, with affected employees required to sign nondisclosure agreements (NDAs) to prevent them from discussing specifics.
The veil of secrecy has left many wondering about the true scale and implications of these job cuts.
IBM’s first-quarter 2024 earnings report revealed a $400 million “workforce rebalancing” charge, earmarked to cover the cost of planned layoffs.
This comes after a similar $300 million charge in 2023. At the beginning of 2023, IBM had already announced plans to cut 3,900 jobs.
With approximately 288,000 employees worldwide at the end of 2023, the potential impact of the 2024 layoffs could range from 1 percent (around 2,880 layoffs) to more substantial figures.
CEO Arvind Krishna had previously stated that IBM expected to replace approximately 7,800 jobs with artificial intelligence (AI), although no specific timeline was provided.
Age and Geography
The affected employees seem to fall predominantly within the 50-55 age bracket, with 20-24 years of seniority.
These individuals occupy positions in the higher pay bands (L7, L8, and L9), making the layoffs particularly impactful for experienced professionals.
Interestingly, some of the jobs are reportedly being shifted to India, reflecting a hiring freeze in the United States. IBM has a history of moving roles offshore, and this trend continues with the current layoffs.
Response from IBM
When asked to confirm the layoffs, an IBM spokesperson provided a vague response, stating that the workforce rebalancing charge would represent only a “very low single digit percentage” of the company’s global workforce.
However, specifics regarding the number of layoffs and the creation of new roles remain elusive. The lack of transparency has fueled concerns among employees and industry observers alike.
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