IBM is reportedly implementing significant layoffs across various U.S. locations, with its Cloud Classic division—stemming from the 2013 acquisition of SoftLayer—experiencing particularly substantial reductions. Sources indicate that approximately 25% of the Cloud Classic workforce is affected, contributing to an overall estimate of thousands of employees being laid off nationwide. Specific figures remain undisclosed as the company has not issued a public announcement regarding these layoffs.
These job cuts appear to be part of IBM’s ongoing “workforce rebalancing” strategy, a term the company uses to describe its efforts to align staff levels with evolving business priorities. In January, IBM’s Chief Financial Officer, James Kavanaugh, stated, “We expect workforce rebalancing fairly consistent with prior years.” This suggests a continuation of the company’s pattern of periodic staff reductions to optimize operations.
The layoffs have reportedly impacted employees in multiple regions, including Raleigh, North Carolina; New York City and State; Dallas, Texas; and various locations in California. Affected teams span several departments, such as consulting, corporate social responsibility initiatives, cloud infrastructure offerings, sales, and internal systems managed by the Chief Information Officer’s office.
In addition to these layoffs, IBM has been implementing other workforce management strategies. For instance, in February, the company introduced a return-to-office mandate affecting its finance and operations groups, a move perceived by some as an effort to encourage voluntary attrition. Furthermore, IBM has been quietly reducing its workforce over the past year, with reports in September 2024 indicating substantial, unpublicized job cuts.
These developments indicate that IBM is striving to adapt its workforce and business operations to the rapidly changing technology landscape. The company remains focused on aligning its human resources with strategic objectives to maintain its competitive edge.
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