IBM has called upon employees willing to opt for voluntary redundancy as the company initiates another round of global job cuts. These job cuts will primarily focus on positions in Europe and a few other specific departments.
Approximately 80 per cent of the reduction target is set for enterprise operations & support (EO&S) and Q2C missions, as well as finance and operations, encompassing procurement, CIO, HR, marketing and communications, and global real estate.
Referred to as a ‘Resource Action’ by IBM, the impending layoffs were foreshadowed during a Q4 earnings call last month. Furthermore, these are perceived as a ‘transformative’ measure, not solely driven by financial considerations. In January, CFO James Kavanaugh explicitly stated IBM’s intention to achieve yearly saving of about $3 billion by the end of 2024, which is a significant increase from the initial target.
The the initiative is not being introduced exclusively to save costs. The objective is to improve productivity and align the workforce with skills in high demand, especially in domains such as artificial intelligence (AI) and hybrid cloud.
The European Works Council has reportedly informed staff that around 50 per cent of IBM’s reduction goal will impact staffing levels across Europe. The company is actively seeking employees willing to opt for voluntary redundancy rather than resorting to involuntary terminations for those wishing to remain, although specific figures have not been officially stated.
Slovakia is anticipated to bear the brunt of the cuts, with roughly one-third of IBM’s European reductions affecting its International Centre in Bratislava. Additionally, the Centre in Hungary supporting EO&S/Q2C and the finance function in Bulgaria are slated for significant staff reductions.
