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IBM cuts jobs as it shifts focus to AI

Mar 12, 2024 - qz.com
IBM has announced plans to cut jobs in its marketing and communications division, following a previous announcement of a 1.5% reduction in its global workforce during its fourth-quarter earnings call in January. The exact number of employees to be laid off is currently unclear. The company's chief communications officer, Jonathan Adashek, informed staff of the cuts in a brief meeting. The layoffs are part of a "workforce rebalancing" effort aimed at aligning the company's workforce with in-demand skills, particularly in AI and hybrid cloud.

The move adds to the growing number of layoffs in the tech sector, with nearly 50,000 job cuts reported in the first three months of 2024 alone. Other tech giants including Google-parent Alphabet, Microsoft, Amazon, Sony, Bumble, and Expedia have also announced job cuts this year. Despite the layoffs, IBM's CFO James Kavanaugh stated that the company still plans to hire in higher-growth areas.

Key takeaways:

  • IBM announced plans to lay off 1.5% of its global workforce and is slashing jobs in its marketing and communications division.
  • The company's chief communications officer, Jonathan Adashek, informed staff of the cuts in a seven-minute meeting.
  • IBM's focus is on increasing productivity and aligning its workforce with in-demand skills, particularly in AI and hybrid cloud.
  • IBM's layoffs add to the nearly 50,000 layoffs in the tech sector in the first three months of 2024, with other tech giants like Google-parent Alphabet, Microsoft, and Amazon also announcing job cuts.
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