IBM is looking to form its ranks and cut losses as it goes through a major transition, and as a result, it will be laying off thousands of employees in Europe.
As reported by Bloomberg, approximately 10,000 workers will be laid off, mostly in the UK and Germany, but also in Poland, Slovakia, Italy and Belgium. This represents approximately 20 percent of its regional workforce.
The majority of these employees work in the company's legacy IT services business – they handle everyday infrastructure operations, maintain client data centers and install and operate various equipment. Earlier this month, the company had discussed its plans with European labor representatives, Bloomberg added.
Furthermore, IBM will be looking to spin the business off and focus on its hybrid-cloud computing and artificial intelligence unit, in hopes of bringing in fresh profit. The company said its goal is to complete the carve-out as a tax-free spinoff to IBM shareholders by the end of 2021.
“Our staffing decisions are made to provide the best support to our customers in adopting an open hybrid cloud platform and AI capabilities,” an IBM spokeswoman said in an emailed statement. “We also continue to make significant investments in training and skills development for IBMers to best meet the needs of our customers.”
IBM has been cutting jobs for years, with the latest one coming in late May. Back then, even though it did not disclose the exact numbers, it was said that the company laid off thousands of people.