IBM, one of the largest and most renowned tech companies in the world is in the middle of some major developments. As per reports, the American tech company is all set to fire thousands in its operations in the United States.
According to reports, these layoffs may amount to about a whopping 25 per cent of the total workforce of the company. could particularly affect the Cloud Classic division (formerly SoftLayer) of the company. Here, Cloud Classic could see about 25 per cent of its total workforce being trimmed.
This comes at time when the company is scaling up its work in quantum computing. In addition, the era of an AI-boom, the company might just be looking to cut size.
According to some other reports, this wave of layoffs could hit the shores of consulting, sales, cloud infrastructure, and internal systems.
CEO’s Salary Hike
In addition, the company may also look to cut down cost by outsourcing it to other countries, with cheaper labour, elsewhere.
This comes at a time when the IBM chairman and CEO, Arvind Krishna’s salary saw a massive surge recently.
During the same period, his salary increased significantly, with stock awards rising from USD 11.4 million to USD 14.8 million.
| IBM/Twitter
His compensation soared by a mammoth 23 per cent to a staggering USD 25 million in 2024 compared to the USD 20.3 million paycheck he took back home, a year ago.
During the same period, his salary increased significantly, with stock awards rising from USD 11.4 million to USD 14.8 million.
IBM Stocks In Decline
When we look at the company stock’s performance in the recent past, the picture looks underwhelming.
The company shares closed for the week with losses amounting to 2.16 per cent or USD 5.38.
In addition, the company shares have only shrunk in the past month trade at Wall Street.
The New York Stock Exchange (NYSE) listed stock has seen its value being trimmed by a further 6.87 per cent or USD 18.00. This has brought the overall value of the IBM Common stock to USD 243.87.
