IBM has initiated a new round of global job cuts, with a focus on encouraging employees to voluntarily come forward for redundancy as part of the company’s strategy to achieve a $3 billion annual run rate in savings by the end of 2024.
The job cuts, referred to by IBM as a ‘Resource Action,’ were hinted at during the Q4 earnings call last month, marking a transformative initiative for the technology giant. The layoffs will primarily target positions in Europe, with a specific focus on Enterprise Operations & Support (EO&S), Q2C missions, and Finance & Operations.
Approximately 50% of IBM’s reduction goal is expected to impact staffing levels across Europe, and the company is opting for voluntary redundancies over involuntary terminations for those employees who wish to remain. This strategic move is aimed at aligning IBM’s workforce with the skills most in demand, particularly in areas like artificial intelligence (AI) and hybrid cloud technologies.
As the technology landscape evolves, IBM is taking proactive steps to reshape its workforce and prioritize skill sets that align with emerging trends in the industry. The company’s emphasis on voluntary redundancies reflects a commitment to treating employees with transparency and offering them choices in navigating these organizational changes.
