[News] IBM Reportedly Slashing U.S. Jobs—Up to 9,000 Positions at Risk as Focus Shifts to India

According to a report from ijiwei, citing The Register, sources indicate that IBM is laying off thousands of employees across multiple locations in the U.S., with its Cloud Classic division being hit particularly hard. The report suggests that around 9,000 positions may be at risk, including 25% of the Cloud Classic group.

IBM has yet to publicly acknowledge these layoffs, as noted in the report. However, sources state that this move is part of IBM’s broader restructuring plan, which includes shifting jobs overseas—particularly to India. The report also highlights that the number of job openings IBM currently has in India significantly exceeds those in the U.S.

IBM’s Cloud Classic is the company’s original cloud infrastructure platform, formerly known as SoftLayer, which IBM acquired in 2013. While the company continues to maintain the Cloud Classic infrastructure, it has introduced a more advanced cloud platform called IBM Cloud VPC. As noted in the report, IBM’s Cloud Classic customers are expected to transition to Cloud VPC, which may be one of the reasons behind the downsizing of that division.

The layoffs at IBM are not limited to the Cloud Classic unit. According to the report, IBM has reportedly also cut roles in its marketing and communications departments.

The report further notes that IBM is implementing multiple strategies to reduce its workforce, including formal layoffs as well as encouraging voluntary departures. The company is expected to continue cutting jobs, while also pursuing acquisitions and phasing out roles it considers outdated, as the report indicates.

IBM is not the only U.S. tech company to announce layoffs recently. According to a report from ijiwei, citing CNBC and Reuters, enterprise IT provider Hewlett Packard Enterprise (HPE) has also unveiled a layoff plan. The report states that HPE will cut 2,500 jobs over the next 18 months—about 5% of its workforce, including expected attrition.

Read more 

• [News] Siemens to Cut 6,000+ Jobs: Biggest Layoff Since 2017 Amid Automation & EV Challenges
• [News] HPE to Cut 2,500 Jobs as Server Profits Drop and Revenue Falls Short of Estimates
• [News] Microchip to Begin Layoffs March 3 Amid Falling Sales and Inventory Surplus

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