IBM cuts thousands in Cloud Classic, other units: Report

IBM
(Image credit: IBM)

IBM is cutting thousands of jobs across multiple locations in the U.S., and its Cloud Classic unit hit especially hard, reports The Register. The company has not publicly acknowledged these layoffs, but insiders suggested to The Register it is part of an ongoing effort to restructure and shift jobs offshore, particularly to India. 

The report estimates that about 9,000 positions may be at risk, including a quarter of the Cloud Classic group and 10% of the Cloud group, which is a separate business unit. The job cuts are happening in cities like Dallas, New York, Raleigh, and various locations in California. Employees from several departments, including consulting, cloud infrastructure, corporate social responsibility, internal IT, and sales, have been affected. Some learned of their termination through individual notifications, while others heard about it in internal meetings. 

The layoffs extend beyond Cloud Classic, though. IBM recently cut positions in its marketing and communications department, as revealed in an internal meeting led by a senior executive. It also cut some 10% of staff in the Cloud group, as noted above. 

TOPICS
Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • Exploding PSU
    My god, I hope those affected are alright...

    I've no relations with IBM, other than enrolling in an IBM-sponsored data science learning program years ago, but seeing my mates getting laid off left and right... I'm really feel sorry for them..
    Reply
  • gc9
    nit: maybe s/outsourced/offshored/

    outsourcing means moving positions outside the company. If positions are moving to another nation but staying within the multinational company, that sound like offshoring, not outsourcing.
    Reply
  • blppt
    Again, I always find it amazing with the apparent bloodbath in tech industry jobs how we still have one of the lowest unemployment rates in history.
    Reply