IBM layoffs: Company tells employees to ‘raise hand’ and volunteer for sacking
IBM Layoffs: A report claimed that the initiative taken by IBM is being viewed as "transformative" rather than solely financial.
IBM Layoffs: IBM is reportedly asking its employees who wish to opt for voluntary redundancy to step forward as the company begins another round of global job cuts. The layoffs will target positions in Europe as the company attempts to slim down.
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IBM has terms layoffs- ‘resource action' during a Q4 earnings call last month. A report in The Register said that the initiative taken by IBM is being viewed as "transformative" rather than solely financial.
Last month, IBM CFO James Kavanaugh said that the company's goal is that of achieving a “$3 billion annual run rate in savings by the end of 2024”- a significant increase from the original target.
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The report claimed that 80 per cent of the reduction target is directed towards Enterprise Operations & Support (EO&S) and Q2C missions as well as Finance & Operations.
The staff has been told that approximately 50 per cent of IBM's reduction goal will affect staffing levels across Europe, it was reported. But the company wants employees willing to take voluntary redundancy to be laid off rather than involuntarily terminating those who wish to remain, it added.
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As per a report, IBM spokesperson said, In 4Q earnings last month, IBM disclosed a workforce rebalancing charge that would represent a very low single digit percentage of IBM’s global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with."
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The spokesperson continued, "This rebalancing is driven by increases in productivity and our continued push to align our workforce with the skills most in demand among our clients, especially areas such as AI and hybrid cloud."
