Multiple sources stated that the IT company has been creating the job cuts quietly while one insider claimed that “a massive layoff” that was done recently impacted thousands of employees in the Cloud division of IBM, the report revealed.
The sources further stated that the layoffs have been conducted in secrecy and the employees were inquireed to sign non-disclosure agreements.
“Unlike traditional layoffs, this one was done in secret,” the insider stated as reported by TOI.
“My manager informed me that they were required to sign an NDA not to talk about the specifics,” stated the report quoting an impacted IBM employee.
IBM Layoffs: It company confirms job cuts
IBM has acknowledged the reduction in its reduction. However, the company downplayed the extent of the cuts.
In its first-quarter earnings report of 2024, the company revealed a $400 million “workforce rebalancing” charge, indicating that layoffs are part of its restructuring efforts.
“Early this year, IBM disclosed a workforce rebalancing charge that would represent a very low single digit percentage of IBM’s global workforce, and we still expect to exit 2024 at roughly the same level of employment as we entered with,” an IBM spokesperson informed The Register as reported by TOI.
CEO Arvind Krishna, last year, informed that IBM might replace around 7,800 jobs with AI, though no specific time frame was provided.
Based on previous job cuts and the company’s current workforce size, analysts however estimate that the number of layoffs could be significantly higher than what IBM has publicly stated.
“This letter is to inform you that International Business Machines Corporation (IBM) has announced a permanent reduction in force at its worksite [in San Francisco],” Lawrence Sposato, the company’s director of human resources in the United States, reportedly stated in letter to the EDD (Employment Development Department) that was also built public by the agency, reported TOI.
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