International Business Machines (IBM) announced in early November that around 10,000 jobs are to be cut in Europe by the end of the first half of 2021. The sectors hardest hit are traditional IT services, operations and repair of equipment. The hardest hit countries are the UK, Germany, but Poland, Italy, Belgium and Slovakia will not be spared. Following the announcements, the company’s shares fell 1.6% on the same day in New York.
“Our personnel decisions are made to offer our customers the best possible support in introducing an open hybrid platform with cloud computing and AI capabilities,” an IBM spokesman said in a statement. Press release sent by email.
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While IBM shares fell 8.6% in 2020, the spokesman is reassuring: “We continue to invest heavily in the training and skills development of IBM employees in order to respond to the needs of our customers as best as possible.”
There have been many announcements since the company’s new CEO, Arvind Krishna, arrived in February. Firstly, the division into two parts of the company: On the one hand, one part is transferred to the management of the infrastructure, and on the other, a new company called “NewCo”. In addition, on November 5, the company announced that it would focus on the cloud and the 5G market with IBM Cloud for Telecommunications. In a few months, IBM is expected to buy Instana, the application performance management startup, to compete with other technology companies like Amazon and Microsoft that are currently dominating the market.
“We are taking structural steps to simplify and streamline our business,” said James Kavanaugh, IBM’s chief financial officer, when the company released its third quarter results in October. “We anticipate a fourth quarter charge on our operating income of approximately $ 2.3 billion. “”
Although the outlook for the future looks positive, the company is not used to talking about layoffs, with one exception when Lou Gerstner, the former IBM boss, made the announcement in 1993. 60,000 job cuts.