Tencent Technologies News, according to foreign media reports, the U.S. corporate IT services giant IBM confirmed on Thursday that the company will implement layoffs of more than 1,000 people, which confirmed the layoffs on the online message board The Layoff earlier that day.
According to foreign media reports, a person familiar with the situation said that IBM's layoff plan affected about 0.5% of employees. According to IBM's latest statement, IBM has more than 340,000 employees, which means that layoffs will affect about 1700 employees.
A spokesman for IBM told the media in an email:
At present, the company's recruitment page lists 7705 job vacancies.
The backdrop of this downsizing plan is that IBM is seeking to develop its business through a major acquisition and achieve its growing profit target.
IBM's share price has risen 16% since the beginning of 2019. In April, the company reported a 5% year-on-year decline in revenue in the first quarter, below analysts'expectations.
IBM is planning to buy Red Hat, an open source Linux software giant, for $34 billion. The deal will be completed in the second half of this year.
According to Synergy Research Group, IBM has its own public cloud computing services to deploy applications, but the acquisition of Red Hat shows that the company is also trying to get business from customers using other cloud computing services, such as Amazon Cloud Computing and Microsoft Azure, which both have a larger market share.
It is reported that IBM announced layoffs in 2016 and 2017.
According to its annual report, as of February 28, Red Hat had 13360 employees. Whether IBM will make large-scale layoffs after the Red Hat acquisition is not known.
In April, IBM said it expected earnings per share (excluding certain items) to be at least $13.90 in 2019. That would be higher than $13.81 per share in 2018 (excluding certain items).
Over the past year or two, the media have reported on IBM's layoffs every once in a while. In May, for example, foreign media reported that IBM's service sector had laid off more than 300 employees.
In April this year, foreign media reported that IBM Singapore had laid off its employees and more than 600 employees had lost their jobs.
As we all know, the IT application of traditional enterprises has undergone tremendous changes in the Internet era. Enterprises only need to buy cloud computing services of Amazon, Microsoft, Google and other companies on a monthly basis, which is equivalent to having their own high-performance Internet data center. Enterprises do not need to buy expensive servers and commercial software, and build their own telecommunication bandwidth as before. Data centers or computer rooms, such technological changes have also impacted traditional corporate IT services and consulting companies like IBM. (Tencent Technology Revision/Chengxi)