IBM quietly laying off thousands of workers, reports

IBM has quietly been laying off thousands of employees this week, according to sources cited by The Register.

Insiders revealed that employees in IBM’s Cloud division faced significant cuts, impacting thousands of workers. Unlike many layoffs that are publicly disclosed, this one has been kept quiet, with employees reportedly signing non-disclosure agreements (NDAs) to avoid discussing the specifics.

Posts on layoff forums and input from multiple sources suggest the scale of these layoffs is substantial.

“Unlike traditional layoffs, this one was done in secret,” the insider told The Register. “My manager told me that they were required to sign an NDA not to talk about the specifics.”

When approached for confirmation, an IBM spokesperson referred to the company’s earlier statement from the start of the year, where IBM had indicated a workforce restructuring would impact a small percentage of its global workforce. The spokesperson also reiterated that the company still anticipates ending 2024 with a similar headcount to what it started the year with, The Register reported.

In May 2023, IBM announced it would replace about 7,800 jobs with AI, focusing primarily on back-office roles like human resources. The company did not provide any specific timeline. CEO Arvind Krishna projected that up to 30% of these positions could be automated over time.

The company’s Q1 2024 earnings report disclosed a $400 million expense to cover layoffs, building on a similar charge of $300 million in 2023, when IBM initially cut 3,900 jobs.

IBM had approximately 288,000 employees at the close of 2023. If the layoffs account for a small percentage of the workforce, the numbers could range between 2,880 and 8,640 positions, based on previous workforce reduction trends.

IBM’s decision to let go of its employees follows a broader trend among tech giants. Earlier this month, Samsung announced plans to lay off up to 30% of its global workforce in some divisions. Intel also revealed plans to lay off 17,500 employees, accounting for more than 15% of its workforce, as it tries to revive its struggling semiconductor business.