Another Tech Giant Goes For Layoff Exercise!

Thu Jan 26 2023 17:30:01 GMT+0530 (India Standard Time)

The shocks given by the leading firms and tech giants to employees by laying them off started in 2022 and are continuing in the new year as well. Days into welcoming the new year employees working for various companies lost their jobs. The data says that thousands of employees became unemployed.

Giving a hint of how the whole year is going to be, the big companies are laying off employees. The likes of Google, Microsoft, Meta, and others have shocked employees by sacking them. The employees' lives turned upside down by losing the jobs they have been doing for some time.

Now it's the turn of the American multinational technology corporation headquartered in New York International Business Machines(IBM) to sack the employees. Close to 4,000 employees were fired by the management. The company announced the same in a release.

IBM said that Kyndryl business and a portion of the union Watson Health saw the layoffs as the field requires 300 million dollars from January to March and to reduce the costs the employees have been sacked.

Falling short of reaching the cash flow might have forced the management to sack the employees. While IBM management hoped for a target of 10 million dollars, the MNC only managed to record a cash flow of $9.3 billion.

To make the workforce crisp many firms went for the layoff exercise and it appears that IBM also joined the row and sacked the employees. Around 1.5 percent of the workforce of IBM were sacked from their jobs.

"We have taken a number of significant portfolio actions over the last couple of years, which has resulted in some stranded costs in our business," BM Chief Financial Officer James Kavanaugh said.