IBM plans to lay off an unspecified number of employees across the United States. The states include California, Missouri, New York, North Carolina, and Pennsylvania.
According to the Corporation, the layoffs seek to make the company more agile, although they also come amid the coronavirus pandemic that has triggered a major economic slowdown. As a result, many IBM customers have dialed back investments and hold off on big software deals.
The company maintains that all affected employees have been given 30 days of notice, and will receive subsidized medical coverage through June 2021, alongside 90 days of severance pay.
The layoffs will take effect on 22nd June 2020.
Read Also: Uber to Layoff 14% of its Workforce
For its Q1 2020 earnings, IBM reported $17.6 billion in revenues, a 3.4% year-on-year decline attributed to “an unprecedented business climate.” Its net income was $1.2 billion, representing a 26% year-on-year decline.
Therefore, the firm has $12 billion cash on hand, despite accruing $64 billion in debt.
International Business Machines Corporation (IBM) 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.
See Also:
