IBM is set to cull its workforce in Europe, with the UK braced to take a chunk of the cuts. A source told CRN's sister title Channel Partner Insight (CPI) that Big...
https://www.channelweb.co.uk/news/4023640/uk-firing-line-ibm-prepares-job-cuts
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Complete text below from article in the OP:
IBM is set to cull its workforce in Europe, with the UK braced to take a chunk of the cuts.
A source told CRN's sister title Channel Partner Insight (CPI) that Big Blue is poised to cut around 8,000 jobs across the continent, with the UK in line to take a quarter of the total.
IBM did not confirm the figures when contacted by CPI but said in a statement: "Our workforce decisions are made to best support our clients on their journey to adopting an open hybrid cloud platform and AI capability, and we are reinvesting in our business.
"We continue to make significant investments in education and skills development for IBMers to better meet our clients' needs."
The purported cuts come after IBM said in May that it would be cutting an unspecified amount of jobs due to the impact of the pandemic, with the number thought to be in the thousands.
IBM is in the process of spinning out its huge services business into a separate $19bn-revenue, currently dubbed NewCo.
A representative of German trade union Ver.di confirmed cuts of IBM staff across Europe but could not give any figures.
"They haven't fired anyone yet; they are trying to make voluntary cuts," he told CPI.
"Sometimes you could call it a golden handshake, and sometimes it seems to be rather silver instead."
Good ! There's SO much fat in the area that it's stunning. Although there's a TON of fat everywhere in this company. The company has been long in the tooth for years, not to mention over priced in numerous areas. Why are they employing China, India and Russia? They're corporate HQ is in the U S A!
Paywall article - perhaps post the text/content here instead of linking?
Also, folks who are trying to do the 'math' about what's being sold, don't forget that there are many sub-brands in C&CS. That's the bucket dipped into for the past several years (divestitures).
It sure looks like IBM is lining up for a 4th q earnings (01/21/21) clear the decks announcement
https://www.computable.nl/artikel/nieuws/carriere/7096165/250449/ibm-schrapt-8000-banen-in-europa-ook-nederland.html
Watson Health (at least what's left of it) is being actively shopped - a few thousand employees.
We know IBM has trimmed around the edges in the US via layoffs this week. If they are trying to get to an 11,500 number, I would speculate a spinoff is in the works Where would you get let’s say 10k worth of heads? Power and Storage jumps to mind Remember that would most likely take the channel organization, manufacturing, sales and marketing, plus everything at the plants less IP content It sure looks like an alignment to me
- the slow death of IBM...
You can do the math Europe is approx 32% of IBM worldwide and 8k headcount cut coming there. That says 8k / .32 = 25k worldwide if distributed equally
Americas = 8.1 billion in 3rd q = 11,500
Europe = 5.6 billion = 8k
Asia = 3.9 billion = 5,500
I would expect it’s headcount cut OR spinoff to get the headcount cut 2.3 billion restructuring charge just about gets you there