IBM is currently conducting significant layoffs, impacting thousands of employees, but the company appears to be making efforts to keep the news from spreading. According to multiple sources, these layoffs primarily affect senior employees in high-paying positions, with jobs moving overseas, particularly to India. IBM has yet to provide specific numbers, but estimates suggest that thousands could be affected.
Key Facts:
– IBM has been conducting layoffs in secret, affecting thousands of employees.
– These layoffs are primarily impacting senior-level employees in the U.S.
– IBM’s job cuts coincide with a plan to replace thousands of positions with AI.
– Many jobs are reportedly being relocated to India amid a hiring freeze in the U.S.
– IBM’s recent financial reports included a $400 million workforce rebalancing charge, indicating large-scale layoffs.
The Rest of the Story:
Over the past week, IBM has begun executing a series of significant layoffs across various departments, particularly within IBM Cloud, where the impact is being felt most acutely. According to insiders, these layoffs are unusual in that they have been kept under wraps, with employees reportedly being asked to sign non-disclosure agreements (NDAs) to prevent details from becoming public. “My manager told me that they were required to sign an NDA not to talk about the specifics,” one source shared, adding to the growing concern about the company’s transparency.
IBM’s latest layoffs appear to be focused on senior employees in high-paying roles, many of whom are in the 50-55 age bracket with decades of experience at the company. This trend, coupled with IBM’s ongoing practice of moving jobs to lower-cost regions like India, suggests a concerted effort to cut labor costs at home while expanding operations abroad. Multiple sources have corroborated these claims, citing ongoing hiring in India despite a hiring freeze in the U.S.
In its first-quarter earnings report for 2024, IBM acknowledged a $400 million charge for “workforce rebalancing,” a euphemism for layoffs. However, the company has yet to confirm exactly how many jobs will be lost. Speculation based on past trends and IBM’s workforce size suggests that anywhere from 2,800 to 8,600 employees could be affected by the cuts. This follows a similar pattern from 2023 when IBM announced plans to eliminate 3,900 jobs. A spokesperson for IBM stated that the company still expects to maintain the same workforce level by the end of 2024, but many fear that new hires will primarily be overseas, leaving U.S. workers behind.
Commentary:
IBM’s decision to quietly lay off American workers while shifting jobs to India is deeply troubling, particularly as the company tries to keep these actions under wraps. By requiring NDAs and avoiding clear communication, IBM seems to acknowledge that what they are doing will not sit well with the public.
TRENDING: Iconic 65 Year Old Pizza Chain With 10 Locations Files For Bankruptcy
This tactic is often seen when companies know their actions may spark backlash, especially in an election year where issues like offshoring jobs and layoffs of older, experienced workers can become hot-button topics.
At a time when American workers are struggling with inflation and economic uncertainty, seeing jobs move overseas to cut costs feels like a betrayal. IBM’s efforts to replace jobs with AI and shift positions abroad, all while boasting stock growth, could become a significant talking point for voters concerned about the future of the American workforce.
The Bottom Line:
IBM is facing scrutiny for quietly laying off thousands of senior-level employees, many of whom are being replaced by workers in India. While the company claims to be “rebalancing” its workforce, the real story appears to be one of cost-cutting at the expense of U.S. jobs.
READ NEXT: ABC News Debate Moderator Makes Stunning Admission, The Whole Thing Was Rigged
As this story unfolds, IBM’s actions could come under increasing public and political pressure, especially as outsourcing remains a sensitive issue in the current economic climate.
