IBM Layoffs Target 10,000 Workers in Advance of Spinoff

IBM layoffs in Europe will reportedly impact 10,000 jobs. This comes as the company gears up to separate its managed infrastructure services unit from its Global Technology Services division.

IBM is making the cuts to lower costs in its slow-growth services unit and to prepare for the spinoff, Bloomberg reported. The layoffs will impact employees in the United Kingdom and Germany the most. IBM also is cutting jobs in Poland, Slovakia, Italy and Belgium.

In all, the layoffs in Europe will impact about 20% of the workforce in the region.

We couldn’t reach IBM for comment.

Focusing on Cloud Opportunity

IBM’s managed infrastructure services unit will become a new public company, a spinoff that for now IBM is calling “NewCo.”

Last month, Arvind Krishna, IBM’s CEO, said the company is laser-focused on the $1 trillion hybrid cloud opportunity.

IBM’s Arvind Krishna

“Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating,” he said. “Now is the right time to create two market-leading companies focused on what they do best. IBM will focus on its open hybrid cloud platform and AI capabilities. NewCo will have greater agility to design, run and modernize the infrastructure of the world’s most important organizations. Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities — creating value for clients and shareholders.”

IBM has laid off other workers this year. This past summer, it cut jobs at three of its locations in California. According to WARN notices filed with the California Employment Development Department, IBM cut 103 workers at its Costa Mesa site. Software developers, project managers, computer operators, sales specialists and senior management support were among the jobs that went away.

Also, 140 workers lost their jobs at two IBM facilities in San Jose, California.. Most of the jobs were software developers. Also, research staff members were among the impacted workers, as well as two vice presidents.