As we all know COVID-19 has come out as an epidemic which has spoiled the economy of the entire country.
Due to Coronavirus many people have been removed from their jobs. At the same time, now a well-known company IBM has also joined this list. Arvind Krishna-led tech company IBM started firing employees during this hard time.
The company itself confirmed the news of laying-offs in a statement which is given to the media late Friday. After this decision a company spokesperson said that “this unique and difficult situation is for some of our employees. But the company is also giving subsidized and medical coverages to the affected workers of the US through June 2021.”
According to the given statement, It is written that IBM’s decisions are meant for the long-term health of company business as a highly competitive marketplace needs the flexibility to remix high-value skills constantly. However the company did not disclose the count of employees who are soon going to lose their positions.
According to the report of Ars Technica, both the Hewlett-Packard Enterprise (HPE) and IBM, recently announced the pay cuts and significant job losses. For this, HPE also announced their cost-cutting plans in quarterly earning reports of their company. As per the sources IBM will cut salaries of a few employees through this 31st October upto 20-25 percent of total pay amount.
Patrick Moorhead says that IBM is moving as many resources as it can to reach on the cloud. Basically, you lay off a portion of the individuals without the abilities you need and who can’t be re-taught and you acquire individuals with certain ranges of abilities. We must tell you that in the year 2018, the company also acquired Red Hat for $34 billion.