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ibm secretly cuts thousands of employees from its cloud services division, sources say

2024-09-19

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it home reported on september 19 that according to a report by british media the register on wednesday local time, an ibm employee revealed to the media that ibm's cloud service department ibm cloud has experienced a large-scale layoff in the past few days, affecting thousands of employees.

in addition, the layoffs were carried out in secret: laid-off employees had to sign an nda and were not allowed to discuss the specific details of the layoffs with external parties.

specifically, this secret layoff mainly targets senior programmers, sales and support staff. most of the affected employees are between 50 and 55 years old, with 20 to 24 years of work experience. their job levels are concentrated in l7, l8 and l9, and they had quite high salary incomes before the layoffs.

image source: pexels

an ibm spokesperson told british media that the technology giant disclosed a workforce rebalancing charge earlier this year that will affect a "very low single-digit percentage" of ibm's overall workforce. ibm still expects its total number of employees at the end of 2024 to be roughly the same as at the beginning of the year.

ibm's first-quarter financial report for this fiscal year mentioned a $400 million (it home note: currently approximately rmb 2.836 billion) layoff compensation fund. based on ibm's estimate of laying off 3,900 employees in 2023 at a cost of $3 billion over three years, ibm will have approximately 5,200 employees laid off this year, equivalent to 1.8% of its entire workforce.