IBM's Flash Firing: Tech Giant Reportedly Announces Job Cuts In Express 7-Minute Briefing
International Business Machines Corp (IBM) allegedly initiated layoffs in its marketing and communications division without specifying the exact number of job reductions. Jonathan Adashek, IBM's chief communications officer, reportedly disclosed the decision during a brief seven-minute meeting with employees. While CNBC reported on the layoffs, IBM has not officially confirmed the information, as per unnamed sources
International Business Machines Corp (IBM) allegedly initiated layoffs in its marketing and communications division without specifying the exact number of job reductions. Jonathan Adashek, IBM's chief communications officer, reportedly disclosed the decision during a brief seven-minute meeting with employees. While CNBC reported on the layoffs, IBM has not officially confirmed the information, as per unnamed sources.
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Is It Due To The AI-Effect?
This development coincides with IBM CEO Arvind Krishna's statement from last year, where he indicated the company's intention to halt hiring for positions potentially replaceable by artificial intelligence (AI) in the foreseeable future. Specifically, Krishna mentioned that recruitment efforts in back-office functions like human resources would be either suspended or curtailed.
He said, ¡°I could easily see 30% of that getting replaced by AI and automation over a five-year period."
The Rising Trend Of Tech Layoffs In 2024
Tech layoffs in 2024 have been observed across various companies, reflecting shifts in market dynamics, technological advancements, and strategic restructuring.
In 2024, layoffs impacted a significant number of employees across various companies, with at least 204 companies, including IBM, announcing job cuts. According to data from the layoffs.fyi website, these layoffs have affected a total of 49,978 employees. This highlights the widespread impact of workforce reductions within the tech industry and underscores the challenges faced by both employees and companies amidst evolving market dynamics and strategic shifts.
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IBM Opens Voluntary Layoff Program Amidst Workforce Restructuring
IBM has reportedly invited its employees in Europe to consider voluntary redundancy as part of its layoffs initiative. According to a report in The Register, this move by IBM is seen as more than just a financial measure, with a focus on transformation. The majority of the targeted reductions, approximately 80%, are aimed at roles in Enterprise Operations & Support (EO&S), Q2C missions, and Finance & Operations.
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