![]() ![]() It even said that it was planning to hire more than 20,000 people. However, if we go by the official version, IBM plans to restructure its workforce to enable them to work for cloud services and data analysis. It is said that S&D and GTS have been hit the hardest as the entire departments have been decimated. The company’s total workforce was 377,757 at the end of 2015. The note from Bernstein estimated that IBM saved $6.78bn from ‘workforce rebalancing’ in the last decade, by cutting some 96,986 jobs. “We have estimated that it has historically cost IBM about $70,000 to eliminate an employee, which would imply a workforce reduction of about 14,000 employees this quarter,” he said. The job cuts are a result of four straight years of declining revenues as the rise of cloud computing threatens the company’s software and services business. After his severance, he offered to work for a vendor!Īn estimate by Sanford Bernstein analyst, Toni Sacconaghi, puts the total layoff figure at 14,000 jobs. In addition, the company is also relocating a few employees to offices in India and Costa Rica from these offices.Īccording to the website,, an employee who joined IBM in 1980, was asked to leave. In March, around 5,000 people were asked to leave. This is part of the retrenchment, the company had announced in April, 2016. According to media reports, in the third week of May, IBM laid off a few more employees at its offices in the Research Triangle of North Carolina, New York City Poughkeepsie, NY and Boulder, Colorado. Its content is produced independently of USA TODAY.The company is also relocating a few employees to offices in India and Costa Rica from the US. ©CNBC is a USA TODAY content partner offering financial news and commentary. That would be up from $13.81 per share, excluding certain items, in 2018. In April, IBM said it’s looking for at least $13.90 in earnings per share, excluding certain items, for 2019. “While IBM stock will likely be range bound near-term, as investors remain on the sidelines until they have better understanding of IBM’s financial profile post close of the Red Hat acquisition, our positive stance is based on our favorable view of the RHT deal which has the potential to be transformational as it significantly broadens IBM’s capabilities and customer reach,” wrote Daryanani and Liu. IBM announced job cuts in 2016 and in 2017.Įarlier this month, Evercore ISI analysts Amit Daryanani and Irvin Liu highlighted the importance of the Red Hat deal as they initiated coverage of IBM: IBM has its own public cloud infrastructure for deploying applications, but in buying Red Hat, IBM has sought to also gain business from companies adopting other public clouds, like Amazon Web Services and Microsoft Azure, both of which have more market share, according to Synergy Research Group. The deal is set to close in the second half of this year. IBM is in the midst of a plan to acquire open-source software giant Red Hat for $34 billion. The layoffs come less than four months after IBM announced a $2 billion expansion in New York as it invests in developing artificial intelligence hardware.Īnd in January, the company announced it planned to open the first Q Computation Center, utilizing the IBM Q System One integrated quantum computing system, in Poughkeepsie. In April the company reported first-quarter revenue that was down 5% year over year and below analysts’ expectations. IBM shares are up 16% since the beginning of 2019. The trim comes as the Armonk-based company seeks to evolve its business through a major acquisition and meet its goal of growing profits. IBM has more than 340,000 employees, according to its last proxy statement, which means the cuts would affect around 1,700 employees. It is not clear what impact the changes could have on the Poughkeepsie site inquiries from the Journal were not returned Friday.Ī person familiar with the matter said the cuts affect about one half of one percent of employees. The company’s jobs page lists 7,705 openings. “We are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM,” a company spokesperson told CNBC in an email. The company confirmed it is laying off a small percentage of employees, as it reshapes its workforce. While IBM is planning to invest billions in New York to expand its research into artificial intelligence, it is planning to begin layoffs across the company. Watch Video: Video: On Semiconductor Invests in East Fishkill ![]()
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