IBM Announces Layoffs In Brief Meeting
IBM informed its employees about forthcoming staff reductions during a meeting held on Tuesday. The anticipated job cuts are expected to impact the company's marketing and communications divisions.
Jonathan Adashek, IBM's chief communications officer, delivered the announcement to unit staff during a brief meeting lasting approximately seven minutes, as reported by CNBC.
In December, IBM CEO Arvind Krishna told CNBC that the company was "massively upskilling all of our employees on AI." Additionally, in August, IBM announced a plan to replace nearly 8,000 jobs with AI.
Last January, IBM disclosed on its earnings call that it was cutting 3,900 positions. The company stated to CNBC that it expected to exit 2024 with roughly the same level of employment as it entered, following a workforce rebalancing charge.
While IBM has seen growth, it remains relatively modest. Fourth-quarter revenue increased by 4 per cent from the previous year, surpassing earnings estimates.
During the earnings call, CFO James Kavanaugh emphasised the need for workforce rebalancing as the company endeavors to integrate into the emerging narrative surrounding Artificial Intelligence (AI).
Since the introduction of ChatGPT by OpenAI in late 2022, AI has become a significant focus across the tech industry.
