Among many other companies, IBM has joined them in starting to fire employees during the COVID-19 pandemic.
The company’s spokesperson said, “Recognizing the unique and difficult situation this business decision may create for some of our employees, IBM is offering subsidized medical coverage to all affected US employees through June 2021.”
“While we always consider the current environment, IBM’s workforce decisions are in the interest of the long-term health of our business,” said the company, adding that the “highly competitive marketplace requires flexibility to constantly remix high-value skills”.
These layoffs are a move made by the company as a cost-cutting measure, which contains pay cuts and a significant amount of job losses.
It has not yet been mentioned by the company how many will be affected but reports do say that at least thousands of employees will lose their jobs.
This shift in plans for cost-cutting will take place starting on October 31st, while executives of the company will also have to take a pay cut of 20-25%.
“IBM is moving as many resources as it can to the cloud. Essentially, you lay off some of the people without the skills you need and who can’t be re-educated and you bring in people with certain skill sets. So not a net reduction in headcount,” Patrick Moorhead, the principal analyst at Moor Insights & Strategy said.