SVP and Director at IBM Research Arvind Krishna speaks on stage during the 2016 Wired Business Conference on June 16, 2016 in New York City.
Wrong Brian Ach? Photos of Getty
IBM is cutting back on an undisclosed number of jobs, making it the first cut in labor under new Chief Executive Officer Arvind Krishna.
“IBM̵7;s work in a highly competitive marketplace requires flexibility in continuously remaking high-value skills, and our workforce decisions are made in the long-term interest of our business,” IBM’s Edward Barbini said in a statement.
The company declined to comment on how many jobs were affected, though the Wall Street Journal reported it was affecting several thousand employees. IBM has more than 350,000 full-time employees by the end of 2019, when it reported the last official employee headcount. Due to the pandemic, the company will offer subsidized medical coverage to affected United States employees through June 2021.
The layoffs have been in the works for a while, the company said. In both Q4 2019 and Q1 2020 revenue calls, IBM said it could take additional structural actions that could lead to cost savings. IBM also has retraining and education programs for employees to learn skills for new areas the company is targeting for growth, such as cloud computing and artificial intelligence.
Krishna was hired as chief executive in early April, as the company faced pandemic and a continuing growth struggle. Its share price has been about the same as it was a decade ago, though its tech peers have seen rapid growth.
The company’s market capitalization sat at $ 105.80 billion on Thursday.