Editor’s note: The Skinny blog is written by WRAL TechWire founder and editor Rick Smith.
RESEARCH TRIANGLE PARK – IBM is planning to cut thousands of jobs as Big Blue prepares to split into two companies, workers and news sources are reporting.
If COVID-19 wasn’t bad enough, a lot of IBMers are going to be dealing with job loss – or worries that a separation note or a “redundancy” (i.e. layoff in the UK) letter is coming.
“Multiple RAs announced across UK business. In addition to GBS and GTS, further announcements in Systems, Channel, Partner Ecosystem and HR,” writes one IBMer at the Watching IBM Facebook site.
Using IBM shorthand, the acronyms refer to “resource actions,” i.e. layoffs. GBS and GTS refer to IBM business units.
Rick Smith, WRAL TechWire’s editor and a cofounder, writes The Skinny.
At TheLayoff.com, meanwhile, workers say cuts have also been made in marketing.
“Marketing Is Affected,” writes one poster. “May be as large as 20-30%. I was informed this morning that I am affected.”
Adds another:
“I got hit. In marketing as well. Relieved. Same package of 30/90, medical for 12 months at 2021 benefit rates then COBRA for another 6. Last day is December 17.”
But in perhaps a bit of positive news the poster notes: “Hearing it is not that big of a cul this time.”
No word yet, however, about layoff reductions in the Triangle. Interestingly, IBM also has several job postings in RTP, according to Indeed.com.
Several media reports back up the worker’s claims, and IBM is acknowledging cuts are being made.
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“Our workforce decisions are made to best support our clients on their journey to adopting an open hybrid cloud platform and AI capability, and we are reinvesting in our business,” a spokesperson told tech news site The Register. “We continue to make significant investments in education and skills development for IBMers to better meet our clients’ needs.”
Big Blue recently declared its intention to split into two companies, one focusing on cloud and artificial intelligence while the other includes services grops such as Global Business Services and Global Technology Services.
The layoff news comes as IBM in recent days has announced two acquisiions, one geared to services and the other to cloud.
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The IBM service groups have a large presence in RTP, which is one of Big Blue’s largest campuses.
Channel Partner Insight reports that some 8,000 jobs will be cut across Europe.
IBM told CPI that said changes were being made in the workforce “to best support our clients on their journey to adopting an open hybrid cloud platform and AI capability.”
A labor union in Germany reports that some 2,300 jobs will be cut and issued a warning to customers.
“They will be performed by a workforce that has been reduced by around 25 per cent. The working pressure, which is already at a high level, will increase again,” the union said.
The Register reports hundreds of jobs are being cut in GBS.
“The reason given was to restructure and re-skill for the hybrid cloud, AI and Intelligent Workflow markets,” one IBM insider said, according to The Register. “COVID-19 was not mentioned.”
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But one former IBMer noted at Watch IBM there is a benefit of being let go:
“Gotta say, it does feel good not having to worry about the semi-annual purges anymore. I sleep so much better at night as an ex-IBM’er. What puzzles me is the execs failing to understand how these constant layoffs are affecting the remaining workforce.”
