After Firing 300 Indians, IBM On A Layoff Path; 2000 More Employees Will Be Fired
Weeks after IBM fired 300 Indian employees from their services division, fresh reports are coming in regarding IBM terminating more employees.
2000 more employees will be now fired, and the reason provided is performance issues.
Will this recent job cuts affect India?
IBM Will Fire 2000 Employees
The Wall Street Journal and CNBC, both have reported that IBM is firing 2000 employees, from their American offices.
These employees will be fired because of performance issues, as they were not able to meet and deliver the performance expectations.
In a statement, IBM said, “We are continuing to re-position our team to align with our focus on the high-value segments of the IT market – while aggressively hiring in critical new areas that deliver value for our clients and IBM.”
IBM has more than 350,600 employees, and as per them, a very ‘small percentage of employees’ will be fired because of performance issues ‘at a competitive level’.
No more details were shared.
IBM Had Fired 300 Indian Employees
This layoff comes right after they fired 300 Indian employees, and this proves that IBM is right now on a layoff path/
Last month, IBM had fired 300 Indian employees from their services division, as the company was looking for ‘reinvent itself’.
The fired employees were from the software services division, and as per some analysts, they were fired as IBM is now looking to cement their position in the emerging technologies such as Artificial Intelligence, Robotics and more.
Reskilling of employees at IBM’s India campuses is also on with full force.
After firing 300 employees, IBM India had confirmed that they “remain committed to being an essential part of its (India’s) growth,”
Interestingly, immediately after IBM announced that they will fire 300 Indian employees, HCL announced that they will recruit and make space for 2000+ IBM employees in their company.
IBM’s Shaky Financial Numbers
IBM has been facing real crisis since last 6 years of declining sales.
In the last financial year, IBM barely managed to record 1% revenue growth, which broke the spell of 6-years of declining sales.
Although IBM has 25,000 open positions as of now, worldwide, IBM is slowing down recruitment in the traditional technologies, and ramping up hiring in areas such as AI, Machine Learning, Robotics and more.
We will keep you updated, as more details come in,