IBM has joined the tech layoff club once again this year as it announced laying off employees from its marketing and communications divisions, without mentioning the exact number.
IBM reportedly laid off employees in the company’s marketing and communications division. The decision of layoffs was disclosed in a seven-minute meeting by Jonathan Adashek, the chief communications officer at IBM, with the employees in the department. CNBC reported IBM layoffs citing unnamed sources although the company did not release the information officially.
This comes as the company’s CEO Arvind Krishna said last year that IBM expects to pause hiring for roles which could be replaced with artificial intelligence (AI) in the coming years. Arvind Krishna said that hiring in back-office functions such as human resources will be suspended or slowed. He said, “I could easily see 30% of that getting replaced by AI and automation over a five-year period.”
At least 204 companies including IBM have announced job cuts in 2024 as per layoffs.fyi website. These layoffs have affected 49,978 employees.
IBM Restructuring Plan
In January, IBM’s Chief Financial Officer James Kavanaugh said that the company is likely to spend the same amount on restructuring as it did last year which was $400 million when it reduced its workforce by about 3,900 jobs.
The report states that IBM asked its employees who wish to choose voluntary redundancy and take an initiative in layoffs which would target positions in Europe. IBM’s initiative is seen as “transformative” rather than financial and 80% of the reduction target is directed towards Enterprise Operations & Support (EO&S) and Q2C missions and also towards Finance & Operations.
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