IBM has laid off an undisclosed number of employees across multiple divisions with the company’s service business taking the biggest hit. The majority of the layoffs happened across Pennsylvania, California, Missouri and New York states, where IBM has huge campuses, and thousands of employees from these locations have been asked to resign. During this layoff, the designation, experience, and skill-sets have not been considered, it seems. Employees who have been working with IBM for the last 20 years have been asked to leave. The latest round of IBM layoffs come in the context of the coronavirus pandemic, which has forced some of the IBMs larger corporate accounts to hold back on planned purchases of core hardware and software products over the subsequent few quarters.
After recognizing the unique and difficult situation the business decision may create for a couple of the workers, IBM is offering subsidized medical coverage to all or any affected U.S employees through June 2021.
A North Caroline based worker, whose entire team of 12 employees have lost jobs said, “This was far-ranging and historical employment ratings, age and seniority did not seem to matter”.
IBM, like many firms now facing cuts and layoffs, was not within the better of financial situations before COVID-19 hit. The company’s CEO, Arvind Krishna, has been with the corporate for decades but only stepped into the highest seat in April, saying at the time he was focused on the build-up parts of the corporate that support cloud computing and artificial intelligence and was willing to move away from the rest.
Tech giants across the globe have taken to cutting jobs to survive amidst the novel coronavirus outbreak. Airbnb Inc. and Uber Technologies Inc. have cut about a quarter of their workforces. HP announced an all comprehensive cost-cutting program, including unpaid leave and salary cuts while Dell Technologies Inc. suspended several staff benefits. It’s unclear what percentage of IBM’s cuts are caused by the pandemic. The company has suffered years of falling revenue.
In online forums Thursday, dozens of newly unemployed IBM workers, some who said that they had been with the corporate for almost 20 years, lamented and expressed fear over finding a new job during this recession.