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IBM Cuts Thousands Of Jobs In North America

ibm may22 lt

International Business Machines Corp. has reduced an unspecified number of jobs in North America, likely in thousands, amid the economic slowdown related to coronavirus or Covid-19 pandemic, according to reports.

Bloomberg quoted IBM company spokesman Ed Barbini as saying that the company is offering subsidized medical coverage to all affected U.S. employees through June 2021 due to the unique and difficult situation at present.

The exact number of affected employees were not known, but it could be in thousands and in at least five states of New York, Pennsylvania, California, Missouri and North Carolina. The company had around 352,600 employees as of the end of last year.

Last month,IBM had withdrawn its full-year 2020 guidance in light of the virus crisis after reporting weak earnings and revenues in its first quarter. IBM senior vice president and CFO James Kavanaugh had then said the company has taken actions within the business to provide the necessary flexibility and operating efficiency for the current environment.

The news comes amid significant growth in unemployment rates across the country as months-long restrictions and lockdowns amid coronavirus pandemic has wreaked havoc to many businesses.

Earlier this week, Uber Technologies Inc. also had announced its plans to lay off 3,000 more jobs citing the dramatic impact of the pandemic and the unpredictable nature of any eventual recovery. Earlier this month, the struggling ride-hailing service had announced lay off of 3,700 employees.

Hewlett Packard Enterprise Co. recently said it would reduce some employees to conserve cash. Boeing too was mulling a job cut by about 10 percent amid the pandemic.

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