IBM has initiated another round of layoffs, affecting nearly 9,000 employees across its US locations. This significant workforce reduction is part of a broader corporate restructuring aimed at streamlining operations and reducing costs.
Impact on Cloud Classic Operations
A major chunk of the layoffs comes from IBM’s Cloud Classic division, which provides infrastructure-as-a-service (IaaS) solutions. The Cloud Classic division was built on IBM’s acquisition of SoftLayer in 2013. Reports suggest that around 25% of Cloud Classic staff have been laid off. As IBM shifts its focus to newer cloud technologies, roles in legacy operations are being diminished.
Shifting Jobs to India
According to sources, one of the primary reasons behind the layoffs is IBM’s decision to transfer more jobs to India. This move is part of the company’s strategy to reduce operational expenses while maintaining productivity. India’s growing talent pool in cloud technology and software development makes it an attractive hub for companies seeking to cut costs.
Back-to-Office Mandate
In addition to the layoffs, IBM has introduced a strict return-to-office (RTO) policy. Employees are now required to attend office at least three days a week, with badge swipes being closely monitored. While medical exemptions are technically allowed, reports indicate they are often discouraged by management.
This move has sparked concerns among employees who had adapted to remote work during the pandemic. Many view the policy as a way to further reduce staff by making working conditions less flexible.
Previous Workforce Reductions
This is not the first time IBM has significantly reduced its workforce. In previous years, the company undertook similar layoffs as part of ongoing restructuring efforts. IBM’s Chief Financial Officer James Kavanaugh had previously indicated that workforce adjustments would remain consistent in line with the company’s strategy.
Conclusion
IBM’s latest round of layoffs underscores the company’s focus on adapting to technological advancements while maintaining profitability. However, the impact on employees and concerns over the back-to-office mandate may contribute to uncertainty within the workforce. As the company continues its shift towards modern cloud solutions, further changes in its operations and staffing can be anticipated.
