IBM, one of the leading technology companies, has made headlines once again this year with announcements of employee layoffs. The latest cuts target the company’s marketing and communications divisions, though the exact number of employees affected has not been disclosed.
The decision to lay off employees was revealed in a brief seven-minute meeting led by Jonathan Adashek, IBM’s chief communications officer. While news agency reported on the layoffs, the company itself has not officially confirmed the numbers, relying instead on unnamed sources.
These layoffs come amidst a broader strategy outlined by IBM’s CEO, Arvind Krishna, who indicated last year a shift towards automation and artificial intelligence (AI) in certain job roles. Krishna noted that roles in back-office functions like human resources could see up to 30% of positions replaced by AI and automation over the next five years.
The trend of layoffs in the tech industry is not unique to IBM. According to data from layoffs.fyi website, at least 204 companies, including IBM, have announced job cuts in 2024, affecting nearly 50,000 employees.
In January, IBM’s Chief Financial Officer, James Kavanaugh, hinted at the company’s plans for restructuring, suggesting a budget similar to the $400 million spent last year. In 2023, IBM reduced its workforce by approximately 3,900 jobs as part of its restructuring efforts.
In response to the current layoffs, IBM has offered employees the option of voluntary redundancy, particularly targeting positions in Europe. The company frames this initiative as “transformative” rather than solely financially driven, with a significant focus on Enterprise Operations & Support (EO&S), Q2C missions, and Finance & Operations. Reports suggest that 80% of the reduction target is aimed at these areas.
The news of IBM’s layoffs underscores the ongoing evolution within the tech industry as companies adapt to changing market demands and technological advancements. While such measures may lead to short-term disruptions, they are often part of broader strategies aimed at ensuring long-term competitiveness and innovation.
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