Tech giants IBM and HPE have announced a slew of job and salary cuts, in an attempt to mitigate the disastrous effects the pandemic has had on their businesses, partners and supply chains.
While IBM has not disclosed the number of individuals to be made redundant, it is likely to be in the thousands, according to a MarketWatch report.
“IBM’s work in a highly competitive marketplace requires flexibility to constantly remix high-value skills, and our workforce decisions are made in the long-term interests of our business,” said the firm in a statement.
HPE, meanwhile, is taking even more drastic steps as it aims to save a billion dollars by next year. To do so, the company will make some employees redundant, but also introduce widespread salary cuts.
According to The Register, almost all staff will have their salaries reduced, with only front-line sales workers exempt from the cuts. The more prestigious the position, the greater the percentage drop is likely to be.
“The global economic lockdowns since February significantly impacted our fiscal Q2 financial performance,” said HPE CEO Antonio Neri.
“We are taking decisive steps to navigate the near-term uncertainty, while ensuring we align resources to prioritize growth areas so that we are well positioned to accelerate our edge-to-cloud strategy and address the needs of our customers in a post-COVID-19 world.”
HPE currently employs around 60,000 staff, while IBM employs north of 350,000.