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IBM to cut 10,000 jobs in 2018, says report

IBTimes India 2018-01-12 17:15:22

Visitors walk past the IBM booth at the 9th China International Software Product & Information Service Expo in Nanjing, Jiangsu province September 6, 2013.Reuters File

International Business Machines Corp (IBM) plans to cut roughly 10,100 Global Technology Services (GTS) division jobs.

The job cuts are part of the companies move to redeploy about 30 percent of the group's 103,000 employees, technology website The Register quoted unnamed company sources as saying.

IBM, the American multinational technology company, is one of the world's original PC producers. It is currently a broad-based producer, an integrator and software-maker.

The firm beat expectations for revenue in its last quarterly results in October after 22 straight quarters of declines.

The Register published a leaked slide which it said was from an IBM internal presentation. It showed 10,100 jobs classified as "attrition w/o backfill". 

The word "attrition" is used in countries like the US to refers to the reduction or decrease in a company's workforce when people leave but their positions are not filled, meaning the job is effectively cut from the company.

According to the report, IBM is planning to redeploy 30 percent of its workforce in its GTS division, which could have a significant impact on IBM's Indian workforce.  

"We do not comment on speculation," Reuters quoted an IBM spokesman as saying. "Many consultants recommend things to IBM, many of which remain merely recommendations," he added.

The news comes soon after IBM signed a 10-year managed services agreement with Emirates Airline, in a deal valued at approximately $85 million.

IT consulting giants are rebalancing or reducing headcount amid massive shifts toward IT automation and cloud services.

Tata Consultancy Services (TCS) and Infosys — two of India's largest IT companies — reduced their headcounts for the first time ever in 2017. Tech Mahindra, Cap Gemini and Cognizant also retrenched several employees.