More than 10,000 IBM workers are set to lose their jobs as the company plans to shake up its faltering business. Some 30 per cent of staff are set to be reassigned in its 103,000 computer service delivery business later this year, according to the Register.
One of the world’s original PC producers but now a broad-based producer, integrator and software maker, IBM beat expectations for revenue in its last quarterly results in October after 22 straight quarters of declines. However that doesn’t seem to be enough with cuts expected to take place over the next 12 months.
In a slide revealed by the Register, IBM revealed that fundamentally some “30.9k people is the total [headcount] Impacted” and that 9.3k of those are expected to be redeployed. IBM stated that 10,100 positions - including 1,700 staffers in the US and 8,400 internationally - are to be classified as “Attrition w/o backfill”.
“The numbers make grim reading as 5k out of 30k may not be redeployed or offered roles that replace external suppliers,” an IBM employee said. “IBM has a weird understanding of people's skills, and how to fill job roles. They wish to redeploy resources by making X roles redundant in the country, then pushing resources to take on new roles that have not been filled - like customer-facing new business engagements.”
Before any jobs can are cut, IBM still has to tackle several round of UK redundancies relating to Technical Support Services and IS Delivery that started last year.