Red Hat Layoffs: IBM To Sack About 760 Employees Globally
The North Carolina-based software major has about 19,000 employees across the world. According to The Herald Sun, Red Hat CEO Matt Hicks called the job cuts "a decision our leadership team was truly hoping we could avoid".
New Delhi, April 24: Open source solution provider Red Hat will lay off nearly 4 per cent of its global workforce, or about 760 employees, the media reported on Monday.
The North Carolina-based software major has about 19,000 employees across the world. According to The Herald Sun, Red Hat CEO Matt Hicks called the job cuts "a decision our leadership team was truly hoping we could avoid". Disney Layoffs: Entertainment Giant Kicks Off Second Round of Sackings, 4,000 Employees To Be Impacted.
"This decision is now appropriate to ensure Red Hat's ability to compete in a new environment," he was quoted as saying. IBM acquired Red Hat in 2019 for nearly $34 billion in one of the largest software acquisitions in history.
In an email to employees, Hicks said the cuts "will focus on general and administrative" positions, and not affect positions "directing selling to customers or building out products". He said employees in some countries would be notified of layoffs on Monday, while others would be told over the course of the current fiscal quarter. Deloitte Layoffs: Professional Services Firm To Cut 1,200 Jobs in US.
Earlier this year, IBM confirmed it planned to lay off around 3,900 employees from its global 260,000 workforce. The IBM layoffs are a result of the spinoff of IT infrastructure services provider Kyndryl business and part of the AI unit called 'Watson Health'.
The layoffs were likely to cause a charge of $300 million in the January-March period to the company, according to IBM Chief Financial Officer James Kavanaugh.
(The above story first appeared on LatestLY on Apr 24, 2023 11:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).