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International Business Machines Corporation (IBM) cut an unspecified number of jobs across the U.S., eliminating employees in at least five states. IBM declined to comment on the total number, but the employees reductions appear far reaching.
“IBM’s work in a highly competitive marketplace requires flexibility to constantly add high value skills to our employees. While we always consider the current environment, IBM’s employees decisions are in the interest of the long term health of our business,” company spokesman Ed Barbini said 21st May 2020 in a statement. “Recognizing the unique and difficult situation this business decision may create for some of our employees,IBM is offering subsidized medical coverage to all affected U.S.A employees through June 2021.”
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Based on a review of IBM internal communications on the Slack corporate messaging service, the number of affected workforce is likely to be in the thousands, said a North Carolina based worker who lost his job along with his entire team of twelve. “This was historical and far ranging employment ratings, age and seniority did not seem to matter,” he said. The person asked not to be identified on concern that speaking publicly may impact his separation package.
The cuts also affected workforce in California, Missouri ,New York and Pennsylvania, where IBM is based, according to people familiar with the matter.[[Echo Dot (3rd Gen) - Smart speaker with Alexa
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Another employee who lost his job said the reductions mostly focus on IBM’s North American workforce. Half of his seventy person department were cut on Thursday and told their last day with the company will be June 22. The person asked not to be identified discussing about this sensitive topic.
The tech industry has suffered widespread job losses after the coronavirus (Covid-19) pandemic triggered a severe recession. Uber Technologies Inc and Airbnb Inc. have cut about a quarter of their employees. Earlier on Thursday, Hewlett Packard Enterprise Company. Said it will eliminate some employees to save money, while Dell Technologies suspended some staff benefits.
It’s not clear how many of IBM’s cuts are caused by the pandemic. The company has tolerated years of falling revenue. In an earnings call in January 2020, IBM discussed reducing costs through “aggressive structural actions” to improve the competitiveness of its Global Technology Services consulting unit, which represents about a third of revenue.
In online forums Thursday, dozens of newly unemployed IBM workers, some who said they had been with the company for more than twenty years, lamented the situation and expressed fear over finding a new job in a recession. “With the Covid-19 situation, it will be hard to find new opportunities,” one wrote.
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