One More Round of Layoff: This Tech Giant Reportedly Plans To Terminate 9000 Employees....

The American tech giant, International Business Machines Corporation (IBM) is reportedly laying off thousands of employees across various U.S. locations. The job cuts primarily impact its Cloud Classic division, with sources estimating that around 9,000 workers could be affected, as per 'The Register' report.

"The figures are being kept private, but it is in the thousands," a source told The Register. There has been no official confirmation from IBM regarding the layoffs. Notably, IBM CFO James Kavanaugh mentioned in January that the company expected "workforce rebalancing similar to previous years."

Job Cuts Across Multiple Locations:

The layoffs in IBM, also known as 'Big Blue' are spread across cities such as Dallas, New York, Raleigh, and several locations in California. Reports suggest that employees from multiple departments, including consulting, cloud infrastructure, corporate social responsibility, internal IT, and sales, are among those impacted. Sources say some employees learned of their termination through individual notifications, while others were informed during internal meetings.

Employee's Termination In IBM's Cloud Classic Division:

IBM's Cloud Classic division, the company's original cloud infrastructure platform acquired from SoftLayer in 2013, is facing some of the most significant cuts. Approximately 25% of employees in the Cloud Classic unit are expected to lose their jobs. The division, which provides services like bare metal servers, virtual servers, and storage, has been overshadowed by IBM's newer, more advanced cloud platform, IBM Cloud VPC. This newer platform offers enhanced hardware, improved network performance, and greater security features, making the downsizing of the Classic Cloud unit a logical step in IBM's restructuring efforts.

Restructuring and Shift to Offshore Jobs:

As per the reports, based on the view of insiders in the companies, the layoffs are part of IBM's ongoing restructuring process, which involves shifting jobs to lower-cost regions, particularly to India. The company has been making efforts to streamline operations while investing in areas like artificial intelligence (AI) and new acquisitions.

With ongoing investments in AI and shifting labor to more cost-efficient regions, industry experts suggest that additional job cuts could be on the horizon as IBM continues to evolve its operations.

The company has not officially confirmed the number of layoffs or the specific business units affected, but sources close to the situation suggest the job cuts are a necessary part of IBM's ongoing efforts to adapt to changing technology trends.

About IBM:

IBM or Big Blue is a multinational technology firm located in Armonk, New York. It was formed in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924. IBM is one of the world's major information technology corporations, operating in more than 170 countries.

IBM is well-known for its hardware and software offerings, which include PCs, servers, storage systems, and networking devices. It also offers consultancy, technology, and business services, including cloud computing, data analytics, and artificial intelligence (AI). IBM's research and development activities have helped to create significant technological advances, such as the first programmable computer, the first hard drive, and the first computer virus.