IBM’s Strategic Realignment and Impact on Employees
IBM, the American multinational technology company, announced plans to lay off thousands of employees in Q4 2023 as part of its strategic shift towards more profitable sectors, particularly software.
An IBM spokesperson stated to Bloomberg: “We regularly review our workforce from this perspective and adjust as necessary. In Q4, we are implementing measures that will affect a low single-digit percentage of our global workforce.”
Regional Impact and Current Workforce
The spokesperson clarified that some US employees might be affected, but noted that the number of workers in the country will remain nearly unchanged from the previous year. As of 2024, IBM employed around 270,000 people worldwide.
CEO Arvind Krishna’s Focus on Software Division
Under the leadership of CEO Arvind Krishna, IBM aims to elevate its software division to become the company’s most significant segment. This strategic move comes after IBM’s consulting unit faced challenges due to clients’ concerns about the economy in recent years.
Key Questions and Answers
- Q: Who is Arvind Krishna, and why is he relevant? Arvind Krishna is IBM’s CEO who has been driving the company’s strategic shift towards software, aiming to make it IBM’s primary revenue source.
- Q: Why is IBM laying off thousands of employees? IBM is restructuring its workforce to focus on more profitable sectors, primarily software, as part of a strategic realignment.
- Q: How many employees will be affected, and in which regions? A low single-digit percentage of IBM’s global workforce will be affected, with some US employees possibly impacted while the overall number of employees remains nearly unchanged.
- Q: What is the significance of IBM’s focus on software? By prioritizing its software division, IBM aims to strengthen its position in the technology market and overcome recent challenges faced by its consulting unit due to economic concerns.
