IBM will lay off up to 10,000 jobs in Europe

IBM is planning to lay off 10,000 employees in Europe. The reason for the layoffs is to reduce the cost of its service department and prepare for the split.

Sources said that the large-scale layoffs will affect 20% of IBM’s total employees in Europe. IBM currently has approximately 50,000 employees in Europe.

The focus areas for layoffs are the United Kingdom and Germany. In addition, the branches of IBM in Poland, Slovakia, Italy, and Belgium are also affected.

IBM had earlier warned investors that due to the impact of the pneumonia epidemic caused by the coronavirus, the company needs to lay off employees to deal with the slowdown in revenue.

IBM z15 mainframe

“ML1_1056”by IBM DACH is licensed under CC BY-NC 2.0

Affected by the epidemic, IBM’s revenue growth rate has slowed significantly, and huge staff costs remain high, so the company can only carry out large-scale layoffs.

People familiar with the matter said that the company had already met with European labor representatives at the beginning of this month. At this meeting, IBM disclosed the layoff plan to European labor representatives in advance.

In response to the above-mentioned large-scale layoffs, the official spokesperson of IBM responded that our staffing decision is to provide our customers with the best support.

At present, IBM is vigorously developing cloud computing services, allowing more customers to adopt the open hybrid cloud platform and artificial intelligence technology provided by IBM to promote productivity.

IBM is also actively training employees and investing in the development of employee skills to maximize the satisfaction of IBM customers.

Via: Bloomberg