Pune, May 23, 2020: IT giant IBM led by Arvind Krishna has begun terminating employees during this worldwide pandemic. The organisation authenticated the layoffs in a report given to the media. “Although we always consider the current environment, IBM’s workforce decisions are in the concern of the long-term health of our business,” said company spokesperson Ed Barbini, joining that the “highly competitive marketplace requires flexibility to remix high-value skills constantly”.
“Understanding the unique and challenging situation this business resolution may create for some of our employees, IBM is offering subsidised medical coverage to all affected employees through June 2021,” declared the spokesperson. Till December last year, the company had 3.5 lakhs employees and most of them are in India.
However, the company didn’t declare the number of employees that will be laid off, but media reports say that thousands of employees will be affected. Furthermore, The organisation will also slice some wages through October 31, with executives receiving pay reductions of 20 to 25 per cent.
Employees from Pennsylvania, California, Missouri and New York, USA, where IBM has enormous campuses, and thousands of representatives from these locations have been ordered to resign. “IBM is advancing as many resources as it can to the cloud. Primarily, the people who cant be trained and do not possess the specific skill sket can be laid off, So this is not a net reduction in headcount”, the spokesperson concluded.