International Business Machines Corp. (IBM) has announced about 10,000 job cuts in Europe, a move that seeks to lower costs at its slow-growth services unit and prepare the business for a spinoff.
The job cuts are projected to affect about 20% of staff in the region, with the U.K. and Germany being the most impacted. The cuts will also affect workers in Poland, Slovakia, Italy and Belgium, albeit on a small scale.
IBM said in October it’s planning to spin off the business and focus on its new hybrid-cloud computing and artificial intelligence unit, which the company hopes will return it to revenue growth. The firm aims to complete the carve-out as a tax-free spinoff to IBM shareholders by the end of 2021.
In May this year, IBM laid off an unspecified number of employees across the United States. The affected states included California, Missouri, New York, North Carolina, and Pennsylvania.
International Business Machines Corporation is an American multinational technology company with its headquarters in Armonk, New York, and operations in over 170 countries. It produces and sells computer hardware, middleware, and software, and provides hosting and consulting services.
It holds the record for most U.S. patents generated by a business (as of 2020) for 27 consecutive years. It is one of the world’s largest employers, with (as of 2018) over 352,600 employees.
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