IBM Layoffs: IT Firm To Fire Thousands In These Locations, Says Report

IBM is reportedly laying off thousands of employees across several locations in the United States, according to a report by The Register. Citing sources familiar with the matter, the report reveals that the job cuts involve a significant reduction in IBM’s Cloud Classic division. Layoffs have been reported in Raleigh, North Carolina; New York City and State; Dallas, Texas; and California. 

While the exact number of affected employees remains undisclosed, a source told the publication, “Concrete numbers are being kept private,” adding, “It is in the thousands.”

According to the report, employees across various departments have been affected, including those in consulting, corporate social responsibility, cloud infrastructure, sales, and internal IT systems. Additionally, last week, reports surfaced that IBM’s Marketing and Communications group also faced layoffs, which were revealed during an internal call by Senior Vice President Jonathan Adashek.

Also Read: Layoffs: Hewlett Packard To Let Go Of 2,500 Employees. See What Led To The Job Cuts

Broader Restructuring Effort

In the Cloud Classic division—established through IBM’s 2013 acquisition of SoftLayer—sources suggest in the report that the job cuts are part of a broader restructuring effort. One source explained in the report, “It’s a resource action. I don’t know the exact number of people in IaaS Classic, as that information is typically hard to obtain. However, they’ve been making significant efforts to shift employment to India as much as possible.”

A former IBM employee recently laid off described the situation as a significant round of layoffs, with approximately 10 per cent of the broader cloud division being affected, according to a Times of India report. “Everyone I know that was affected, myself included, was simply offered a separation agreement,” the individual shared.

Return-To-Office Policies

Additionally, IBM employees are now required to follow new return-to-office policies, which mandate in-person attendance at least three days a week by the end of April. Sources indicate that badge swipes are being monitored, and management is reportedly discouraging medical exemptions for the new policy.