IBM CEO Arvind Krishna

IBM is laying off employees, joining other tech companies that have been forced to reduce headcount in the economic downturn.
IBM is cutting “several thousand jobs,” mainly in its global technology services division, a source told Business Insider.
Ed Barbini, IBM’s vice president for corporate communications, said in an email to Business Insider: “Our workforce decisions are made in the long-term interests of our business. Recognizing the unique current conditions, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021.”
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IBM is laying off employees, joining other tech giants that have cut jobs amid the COVID-19 crisis.

IBM is eliminating “several thousand” jobs, mainly in the company’s technology services division, a source familiar with the company’s plans told Business Insider.

Ed Barbini, IBM’s vice president for corporate communications, confirmed the job cutsm which were first reported by Bloomberg.

“Our workforce decisions are made in the long-term interests of our business,” he told Business Insider in a statement. “Recognizing the unique current conditions, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021.”

The company is also offering affected employees three months pay and health coverage for a year, the source said.

IBM’s global technology services division, which offers support to clients that run their networks on on-premise data centers or the cloud, is Big Blue’s biggest business segment. The company had said in recent earnings reports that it planned to make changes to improve that business section’s financials.

Last month, new CEO Arvind Krishna, who took over in April, announced that IBM was withdrawing its outlook amid the economic uncertainty caused by the pandemic.

“These are unprecedented times, and this quarter is not the time to declare that we have clarity,” Krishna told analysts during the company’s first-quarter earnings call.

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SEE ALSO: Here are 9 companies IBM could buy given that new CEO Arvind Krishna said that it will get back to its ‘acquisitive strategy’ in a few months, according to experts

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Source:: Business Insider

      

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