IBM is reportedly planning to reduce its workforce by as many as 9,000 employees across various U.S. locations as part of a significant corporate reorganization. A recent article from The Register highlights that a considerable portion of these job cuts will affect the Cloud Classic division, with nearly 25% of its employees facing potential redundancy. While the exact number of layoffs has not been confirmed by IBM, the news has generated considerable concern among its workforce.
Impact on U.S. Workforce and Job Transfers
The layoffs primarily target teams in consulting, corporate social responsibility, cloud infrastructure, sales, and internal IT under the guidance of IBM’s Chief Information Officer. This reduction is part of a broader strategy to transition jobs to India, where the company is increasingly focusing its labor resources.
- IBM’s Cloud Classic division originated from its 2013 acquisition of SoftLayer, and the company has been gradually relocating roles overseas.
- Reports indicate that IBM currently has more job openings in India compared to the U.S., supporting CEO Arvind Krishna’s earlier statements on shifting labor focus to the subcontinent.
- The restructuring is expected to create or expand positions in India, particularly in cloud computing, infrastructure, sales, and consulting.
Locations Affected by Layoffs
Layoffs have been confirmed across several major IBM offices, including:
- Raleigh, North Carolina
- New York City and State
- Dallas, Texas
- California
Insiders revealed that affected employees have been notified of their status in what has been termed a “resource action.” This indicates a formalized process for managing workforce reductions.
New Policies for Remaining Employees
For those who remain with IBM in the U.S., the company is rolling out new workplace policies. Employees not impacted by the layoffs must return to the office a minimum of three days a week, starting in late April. Compliance will be monitored through badge swipes, and while medical exemptions are permitted, there seems to be a discouragement from management for employees to pursue them.
Future Outlook for IBM
Although IBM has not officially disclosed the total number of layoffs or the comprehensive details of its restructuring plan, insiders suggest this move is part of a larger strategy aimed at cost-cutting and workforce realignment. The implications of these changes could significantly reshape IBM’s operational landscape in the coming months.
For more information on how companies are adjusting their workforce strategies, check out related articles on workplace trends and the impact of global outsourcing.
