IBM is reportedly set to lay off up to 9,000 employees across various locations in the United States as part of a large-scale corporate restructuring. According to a report by The Register, a significant portion of the job cuts will impact the company’s Cloud Classic division, with nearly a quarter of its workforce facing redundancy. However, IBM has not officially disclosed the exact number of layoffs yet.
The affected teams reportedly include employees in consulting, corporate social responsibility initiatives, cloud infrastructure, sales and internal IT teams working under IBM’s Chief Information Officer.
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One of the key reasons for the layoffs in IBM Cloud Classic, which is based on the company’s 2013 acquisition of SoftLayer, is IBM’s ongoing strategy to shift employment to India. Reports suggest that IBM has been gradually moving jobs overseas and this restructuring further accelerates that shift.
IBM currently has more job openings in India than in the US and the company’s CEO, Arvind Krishna, has earlier emphasised on “shifting labor focus to India”, The Register reported.
As part of the restructuring, IBM is expected to create or expand roles in India, particularly in cloud computing, infrastructure, sales and consulting.
The layoffs have been confirmed in several key IBM offices, including those in Raleigh, North Carolina; New York City and State; Dallas, Texas; and California. According to sources quoted by The Register, IBM employees impacted by the layoffs have been informed of the decision in what has been described as a “resource action”.
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For those remaining at IBM in the US, new workplace policies are being enforced. Employees who were spared from layoffs have been instructed to return to the office at least three days a week starting in late April. Reports indicate that badge swipes are being monitored to ensure compliance and while medical exemptions are technically allowed, they are reportedly being discouraged by management.
IBM has not publicly commented on the exact number of job losses or the full extent of its restructuring. However, insiders suggest that the move is part of a broader shift in IBM’s global workforce strategy,
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