{"id":18794,"date":"2020-05-23T03:47:01","date_gmt":"2020-05-23T03:47:01","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/ibm-confirms-layoffs-are-happening-but-wont-provide-details.html"},"modified":"2020-05-23T03:47:01","modified_gmt":"2020-05-23T03:47:01","slug":"ibm-confirms-layoffs-are-happening-but-wont-provide-details","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/ibm-confirms-layoffs-are-happening-but-wont-provide-details.html","title":{"rendered":"IBM confirms layoffs are happening, but won\u2019t provide details"},"content":{"rendered":"

IBM<\/a> confirmed reports from overnight that it is conducting layoffs, but wouldn\u2019t provide details related to location, departments or number of employees involved. The company framed it in terms of replacing people with more needed skills as it tries to regroup under new CEO Arvind Krishna<\/a>.<\/p>\n

\u201cIBM\u2019s <\/a> work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,\u201d an IBM spokesperson told TechCrunch.<\/p>\n

Patrick Moorhead, principal analyst at Moor Insights Strategy, says he\u2019s hearing the layoffs are hitting across the business. \u201cI\u2019m hearing it\u2019s a balancing act between business units. IBM is moving as many resources as it can to the cloud. Essentially, you lay off some of the people without the skills you need and who can\u2019t be re-educated and you bring in people with certain skill sets. So not a net reduction in headcount,\u201d Moorhead said.<\/p>\n

It\u2019s worth noting that IBM used a similar argument<\/a> back in 2015 when it reportedly had layoffs. While there is no official number, Bloomberg is reporting<\/a> that today\u2019s number is in the thousands.<\/p>\n

Holger Mueller, an analyst at Constellation Research, says that IBM is in a tough spot. \u201cThe bets of the past have not paid off. IBM Cloud as IaaS is gone, Watson did not deliver and Blockchain is too slow to keep thousands of consultants occupied,\u201d he said.<\/p>\n

Mueller adds that the company could also be feeling the impact of having workers at home instead of in the field. \u201cEnterprises do not know and have not learnt how to do large software projects remotely. [\u2026] And for now enterprises are slowing down on projects as they are busy with reopening plans,\u201d he said.<\/p>\n

The news comes against the backdrop of companies large and small laying off large numbers of employees as the pandemic takes its toll on the workforce. IBM was probably due for a workforce reduction, regardless of the current macro situation, as Krishna tries to right the financial ship.<\/p>\n

The company has struggled in recent years, and with the acquisition of Red Hat<\/a> for $34 billion in 2018, it is hoping to find its way as a more open hybrid cloud option. It apparently wants to focus on skills that can help them get there.<\/p>\n

The company indicated that it would continue to subsidize medical expenses for laid off employees through June 2021, so there is that.<\/p>\n

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Incoming IBM CEO Arvind Krishna faces monumental challenges on multiple fronts<\/a><\/p>\n<\/blockquote>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/gYGty9U-ujo\/<\/p>","protected":false},"excerpt":{"rendered":"

IBM confirmed reports from overnight that it is conducting layoffs, but wouldn\u2019t provide details related to location, departments or number of employees involved. The company framed it in terms of <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-18794","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t