The tech giant IBM has also taken to job cuts and cost-cutting measures as the companies are hit by the coronavirus pandemic hampering the business growth and incurring losses to firms. Humungous layoffs and furloughs are being levied on the employees across the industries as a severe economic recession is on its way.
IBM is looking to layoff employee amid Covid-19 pandemic
IBM is one of the largest tech firms in the world with thousands of employees in most of the companies in the world. The pandemic has created havoc for businesses everywhere.
Official Statement Released
“IBM’s work in a highly competitive marketplace requires flexibility to constantly add high-value skills to our workforce. While we always consider the current environment, IBM’s workforce decisions are in the interest of the long-term health of our business,” said IBM’s spokesperson Edward Barbini.
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“Recognizing the unique and difficult situation this business decision may create for some of our employees, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021″.
No figures disclosed
IBM did not reveal the number of employees to be laid off, however, the estimate is that thousands of employees will be affected by this across the various states in the United States. There will be job cuts in NC, Missouri, New York, Pennsylvania, and California as reported by Bloomberg.
First mass layoff after new CEO took over
After the new CEO, Anand Krishna took over, this would be the tech behemoth’s first mass layoff. The new CEO said that the company would come out of the pandemic however the times are tough.
“I believe history will look back on this as the moment when the digital transformation of business and society suddenly accelerated”.
Not faring well since long
The company has been suffering from decreased revenue over the years and is taking aggressive structural changes to increase its competitiveness in the market. In the current pandemic crisis, most of the tech firms are resonating with layoffs to keep the business finances in place.