IBM Initiates Iterative Workforce Restructuring
IBM is set to lay off thousands of employees worldwide in the final quarter of this year, as the company advances its transition toward a more software-centric business model. The development was confirmed in a report by Reuters.
In an official statement, IBM noted that the company “regularly reviews and adjusts its workforce as part of its ongoing business operations,” and that this restructuring will affect “a small percentage” of its global employee base.
Under the leadership of CEO Arvind Krishna, IBM has been expanding its investments in artificial intelligence and cloud services, particularly through its “Red Hat” division. However, a recent slowdown in growth within its cloud software segment has raised concerns among investors.
The company currently employs approximately 270,000 people globally. While certain U.S.-based employees will be included in the layoffs, IBM clarified that overall employment levels in the United States are expected to remain largely unchanged.
IBM’s stock price had risen by about 35 percent throughout the year, but the announcement of the layoffs triggered a roughly 2 percent decline.
DBTech/BMT/OR
