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IBM Layoffs- The pace of growth in IBM’s cloud software segment has been slow in the last month. This is the same segment which is the center of the company’s future strategy. The company has said that it is reorganizing its workforce to maintain competition.
New Delhi. The tech industry around the world is currently going through a period of great turmoil. News of layoffs have now become an everyday part. After Amazon, Microsoft and Google, now IBM (International Business Machines Corp) has also announced layoffs. According to a Bloomberg report, thousands of employees are likely to be affected by layoffs. The company says that this step is being taken to focus its business model on the software and service sector.
IBM will make layoffs from this quarter. The company plans to deploy its resources in new business areas to maintain competitiveness in the changing technological environment. A company spokesperson said that IBM regularly reviews its workforce and does rebalancing when necessary. “We are taking an action in the fourth quarter that will impact a small portion of our global employees,” the spokesperson said.
Why are there layoffs?
According to a Reuters report, the pace of growth in IBM’s cloud software segment has been slow in the last month. This is the same segment which is the center of the company’s future strategy. Its effect was also visible in the stock market and IBM’s shares, which had increased by 35% this year, fell by about 2% on Tuesday.
Who will be affected?
This layoff will affect some US employees, although the company has also clarified that the total employment number in the country will remain almost the same. By the end of 2024, IBM had approximately 2.7 lakh employees. Now the jobs of thousands of them are under threat. This move by IBM is part of a global trend in which big tech companies are cutting their workforce while moving towards artificial intelligence and automation.
