IBM Confirms that It is Letting Many Employees Go

12:18 06/07/2019

What was first revealed on online message board TheLayoff, has been confirmed by IBM IBM  this week.

IBM is in fact letting go of some of its employees.

According to a person familiar with the matter, IBM's job cuts will represent only half of a percent of the company's employees. The last proxy statement from IBM stated the company had over 340,000 employees which means the latest cut will affect roughly 1,700 people.

“We are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM,” an IBM spokesperson said to CNBC in an email.

One user on TheLayOff wrote, 'I got my RA letter today. After being rebadged to IBM after IBM took over infrastructure responsibilites, 18 months later I'm here. Being 57 doesnt help much either.'

IBM is also in the process of trying to acquire Red hat, an open source software company, for $34 billion and the deal is expected to close in the second half of the year.

It was in early June that Evercore ISI analysts Amit Daryanani and Irvin Liu discussed how important the Red Hat acquisition is and said, 'While IBM stock will likely be range bound near-term, as investors remain on the sidelines until they have better understanding of IBM’s financial profile post close of the Red Hat acquisition, our positive stance is based on our favorable view of the RHT deal which has the potential to be transformational as it significantly broadens IBM’s capabilities and customer reach.'

Since the year began, shares of IBM are up about 16%.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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