COVID-19 Crisis: IBM lays off employees

Amid the outbreak of coronavirus pandemic, tech-giant IBM reported a fresh batch of layoffs this week. The number of job cuts across the US is unspecified, eliminating employees in at least five states. The firm, however, declined to comment on the total number, but the workforce reductions appear extensive.

The job cuts made due to Covid-19 is the first significant workforce restructuring to take place under leadership of Arvind Krishna as IBM’s CEO and James Whitehurst as its new president.

IBM“IBM’s work in a highly competitive marketplace requires flexibility to constantly add high-value skills to our workforce. While we always consider the current environment, IBM’s workforce decisions are in the interest of the long-term health of our business,” company spokesman Ed Barbini said in a statement.

Citing the critical situation due to the pandemic, this business decision was created for some of the employees; however, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021.

The tech industry is facing the burden of job losses after the coronavirus pandemic prompted a severe recession. Airbnb Inc. and Uber Technologies Inc. have lashed about a quarter of their workforces. Earlier on Thursday, Hewlett Packard Enterprise Co. said it will be eliminating some employees in a bid to save money, while Dell Technologies Inc. stopped several staff benefits.

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