📚 Hands Up If You Want To Volunteer For Layoffs, IBM Tells Staff

Paul Kunert writes in an exclusive report for The Register: IBM is asking staff who want to take voluntary redundancy to raise their hand as it embarks on a new round of global job cuts, though roles in Europe and within a handful of departments are expected to shoulder the brunt. The Resource Action, as Big Blue likes to euphemistically refer to layoffs, shouldn't be a massive surprise to anyone with more than a passing interest in IBM as it was signaled last month in a Q4 earnings call. Insiders told us this latest process is not considered to be financial but "transformative," although IBM was quite clear in January when CFO James Kavanaugh discussed achieving "$3 billion annual run rate in savings by the end of 2024." This is a third bigger than the initial ambition. The Reg understands that 80 percent of the reduction target is aimed at Enterprise Operations & Support (EO&S) and Q2C missions, Finance & Operations (including Procurement, CIO, HR, Marketing & Comms and Global Real Estate). The European Works Council, one IBMer told us, has informed staff that circa 50 percent of IBM's reduction goal will impact staffing levels across the European continent. As if often the preferred route, IBM is seeking employees that are happy to take voluntary redundancy, rather than ditching someone that doesn't want to leave. The sources we spoke to did not reveal the total population in scope for redundancies or the numbers of volunteers being sought. IBM did not confirm the numbers either. [...] Slovakia, we're told, is to feel the tightest squeeze with around a third of IBM's cuts in Europe landing on its International (shared services) Center in Bratislava; the Center in Hungary that supports EO&S/ Q2C, as well as the Finance function in Bulgaria are also going to absorb what our sources described as the most dramatic staff reductions.

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