IBM Layoffs 2024: Tech Giant Sacks Employees From Two Divisions, To Focus on AI; CCO Jonathan Adashek Reveals Job Cut News in 7-Minute Meeting
IBM adopted new strategy and asked employees to voluntarily retire from the company in a 7-minute meeting conducted by COO Jonathan Adashek. As per a report, the IBM CEO Arvind Krishna already emphasised about adoption of artificial intelligence.
Mumbai, March 25: IBM layoffs were announced by Jonathan Adashek, Chief Communication Officer, during a 7-minute session. The IBM layoffs were implemented within the company's marketing and communication divisions aligning with IBM CEO Arvind Krishna's statement to focus on AI. In 2024, many companies have adopted different strategies for layoffs, such as restructuring, reduction due to economic slowdown and asking employees to retire voluntarily. IBM adopted the last one by allowing employees to self-residence.
IBM's layoffs were reportedly implemented as a cost-saving measure in the marketing and communication areas of the tech company. The reports did not mention the exact number of employees who were to be laid off; however, they came as a move from IBM to adapt to artificial intelligence. According to a report by Times of India, IBM CEO Arvind Krishna focused on training employees to adapt to the new AI-powered business environment. Paytm Layoffs: Paytm’s Parent Company One97 Denies Reports Suggesting 25–50% Job Cuts in Business Segments After Praveen Sharma Steps Down As SVP.
In December 2023, IBM CEO Arvind Krishna mentioned about 30% of specific roles were to be replaced by artificial intelligence and automation. He reportedly emphasised that the IBM layoffs might be from back-office function roles. In January 2023, the IBM CEO cut 3,900 jobs during the company's earning call. Further, the report added that CFO James Kavanaugh also said that tech companies would maintain employment levels similar at the beginning of 2024 as in 2023.
According to Layoffs.fyi, a website that tracks tech layoffs since Covid-19 highlighted that 219 tech companies laid off 50,841 employees so far in 2024. In 2023, these employees were 2,63,180 cut by 1,191 companies. In 2022, there were 1,65,269 employees from 1,064 tech companies. Apple Layoffs 2024: As Tech Giant Cancels Its In-House MicroLED Display Project for Apple Watches, Dozens of Roles Might Be Eliminated, Says Report.
According to the Times of India, last month's IBM layoffs resulted from a more significant trend among tech companies that want to adopt AI rapidly and optimise their business operations. IBM joined the list of tech giants like Google, Meta, Amazon and Microsoft that laid off employees from multiple visions and heavily invested in artificial intelligence. In Q4 2023, IBM reported a 4% modest revenue increase compared to the previous year. The report said IBM would face fierce competition from tech leaders offering groundbreaking AI developments.
(The above story first appeared on LatestLY on Mar 25, 2024 12:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).