https://www.theregister.com/2024/09/18/ibm_job_cuts/ # # Sign in / up The Register(r) -- Biting the hand that feeds IT # # # Topics Security Security All SecurityCyber-crimePatchesResearchCSO (X) Off-Prem Off-Prem All Off-PremEdge + IoTChannelPaaS + IaaSSaaS (X) On-Prem On-Prem All On-PremSystemsStorageNetworksHPCPersonal TechCxOPublic Sector (X) Software Software All SoftwareAI + MLApplicationsDatabasesDevOpsOSesVirtualization (X) Offbeat Offbeat All OffbeatDebatesColumnistsScienceGeek's GuideBOFHLegalBootnotesSite NewsAbout Us (X) Special Features Special Features All Special Features Cybersecurity Month VMware Explore Blackhat and DEF CON Cloud Infrastructure Month Malware Month The Reg in Space Spotlight on RSA Vendor Voice Vendor Voice Vendor Voice All Vendor Voice Amazon Web Services (AWS) New Horizon in Cloud Computing Google Gemini Hewlett Packard Enterprise: Edge-to-Cloud Platform Intel vPro VMware (X) Resources Resources Whitepapers Webinars & Events Newsletters [front] Off-Prem 5 comment bubble on white IBM quietly axing thousands of jobs, source says 5 comment bubble on white We did warn you, Big Blue tells The Reg, as Cisco also swings the ax as promised icon Thomas Claburn Wed 18 Sep 2024 // 19:04 UTC # IBM has been laying off a substantial number of employees this week and is trying to keep it quiet, our sources have said. One IBM employee told The Register that IBM Cloud experienced "a massive layoff" in the past few days that affected thousands of people. "Unlike traditional layoffs, this one was done in secret," the insider said. "My manager told me that they were required to sign an NDA not to talk about the specifics." [front] Multiple posts on layoff-focused message boards and corroborating accounts with other sources familiar with the IT giant's operations suggest the cuts are large. [front] [front] Asked to confirm the layoffs, an IBM spokesperson told The Register, "Early this year, IBM disclosed a workforce rebalancing charge that would represent a very low single digit percentage of IBM's global workforce, and we still expect to exit 2024 at roughly the same level of employment as we entered with." IBM's first-quarter 2024 earnings report said that the mainframe goliath took a $400 million "workforce rebalancing" charge to cover the cost of planned layoffs. That's after a $300 million "workforce rebalancing" charge in 2023. At the beginning of 2023, IBM announced plans to cut 3,900 jobs. [front] With about 288,000 employees worldwide at the end of 2023, the "very low single digit percentage" possibilities for 2024 might be 1 percent (2,880 layoffs), 2 percent (5,760 layoffs), 3 percent (8,640 layoffs), or more. Assuming a fixed cost per employee, last year's charge and job cut disclosure suggests about 5,200 positions would be eliminated with a $400 million charge. Last year, CEO Arvind Krishna said IBM expected to replace around 7,800 jobs with AI, though no specific time frame was provided. His corporation's stock price is up 33 percent year to date to $215 a share. * More layoffs at Microsoft: What's really going on here? * Dell says biz transformation continues. Translation: More layoffs * Samsung faces strikes in India, amid reports of global layoffs * Meta's mass layoff severance agreements illegal, says judge IBM's spokesperson did not respond to a request to be more specific about the number of layoffs and to explain where new roles were being hired to maintain a flat headcount. According to our source, the job cuts have been directed mainly at senior-level programmers, sales, and support. This individual's job is headed to India, we're told, reflecting a hiring freeze in the US. But hiring is said to be ongoing in India. [front] IBM has a history of moving jobs to India. As with prior layoffs, or "resource actions" to use IBM's euphemism, we're told those affected are substantially in the 50-55 age bracket with 20-24 years of seniority. "It seems exclusively people in L7 and L8 and L9 bands, at the top of the band in payment structure," the insider said. Despite numerous past and ongoing age discrimination lawsuits, IBM maintains it does not systematically discriminate on the basis of age. (r) And not just Big Blue Last month, Cisco announced it was axing roughly 6,000 employees. True to its word, it is this week giving those thousands the bad news and laying them off. Staff at AppDynamics, Splunk, Cisco Services, Cisco Commerce, sales, Cisco Talos, and other sections are said to be affected. This follows 4,000 or so folks cut at the start of 2024. Cisco has so far declined to comment beyond what it said in August. Back then the networking equipment maker said it was kicking off "a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business. "In connection with this restructuring plan, Cisco currently estimates that it will recognize pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. "Cisco expects to recognize approximately $700 million to $800 million of these charges in the first quarter of fiscal 2025 with the remaining amount expected to be recognized during the rest of the fiscal year." 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