New Delhi: The layoff spree that started in 2022 seems to be continuing. To date, there is no sign of relief from the job-cutting news. Many companies announcing a fresh round of layoffs. Following suit, tech giant IBM has once again joined the ranks of companies implementing layoffs this year.
Employees To Be Affected
The company revealed plans to lay off employees from its marketing and communications divisions. (Also Read: Want To Invest In Eco-Friendly Schemes? Check Detailed Comparison Of SBI vs BoB Green Rupee Term Deposit)
Number Of Affected Employees
However, the exact number of affected employees was not disclosed. (Also Read: NHAI Revised Banks & NBFC List To Issue FASTags: Check New Authorized Entities Here)
Layoffs Unveiled In 7-Minute Brief Meeting
The decision to downsize was unveiled during a concise seven-minute meeting led by Jonathan Adashek, IBM’s chief communications officer, with employees in the affected departments.
Although IBM did not officially confirm the layoffs, CNBC reported on the restructuring, citing undisclosed sources.
AI Impact
IBM’s move aligns with statements made by its CEO, Arvind Krishna, last year, where he indicated a strategic shift towards leveraging artificial intelligence (AI) to streamline operations.
Krishna mentioned a potential pause in hiring for roles that could be automated in the future, with a focus on back-office functions like human resources. He explained, “I anticipate around 30 percent of those roles could be replaced by AI and automation within five years.”
Companies Announced Layoffs
The reported layoffs add IBM to a growing list of companies implementing workforce reductions in 2024. According to layoffs.fyi, a website tracking job cuts, at least 204 companies have announced layoffs this year, affecting nearly 50,000 employees.
Restructuring Plans
In January, IBM’s Chief Financial Officer, James Kavanaugh, hinted at ongoing restructuring efforts, indicating a comparable spending level to the previous year’s $400 million investment in restructuring. Last year, the company reduced its workforce by approximately 3,900 jobs.
