The American tech major could be planning to sack thousands at various locations around the US, according to a report in The Register. IBM insiders believe that the company is laying off several people, including a quarter of staff at its Cloud Classic operation.
The Big Blue is learnt to be planning to issue thousands of pink slips. “Concrete numbers are being kept private. It is in the thousands,” The Register reported, citing a source. However, there has been no official word from the Big Blue.
Worth mentioning here is that IBM CFO James Kavanaugh had in January declared, “We expect workforce rebalancing fairly consistent with prior years.”
The Register estimates that the latest round of job cuts at the Big Blue could be around 9,000. However, it is hard to gauge if these layoffs are a specific round of layoffs, trimming teams on older products, or the ongoing process of shedding staff. The report added that the employees in Raleigh, North Carolina; New York City and State; Dallas, Texas, and California, have been let go.
Meanwhile, the tech giant’s revenue for the October-December 2024 period rose 1 per cent to $17.6 billion while its software revenue increased by 10 per cent. IBM’s consulting revenue declined by 2 per cent while infrastructure revenue fell by 8 per cent.
Leave a Reply