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May 21, 2020, 11:04 p.m. EDT

IBM announces layoffs, the first under new CEO

Unspecified number of jobs to be cut in move aimed at creating more agility

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By Asa Fitch


Bloomberg News
IBM’s logo is displayed in front of its facility in Yorktown Heights, N.Y.

International Business Machines Corp. is cutting an unspecified number of jobs in the first major workforce reduction under new Chief Executive Officer Arvind Krishna, who is trying to revive growth at the tech company.

Armonk, N.Y.-based IBM /zigman2/quotes/203856914/composite IBM +0.98%   said the cuts are aimed at making it more agile, but they come against the backdrop of a major economic slowdown triggered by a coronavirus pandemic that has caused many of its customers to dial back investments and hold off on big software deals.

“IBM’s work in a highly competitive marketplace requires flexibility to constantly remix high-value skills, and our workforce decisions are made in the long-term interests of our business,” the company said in a statement late Thursday.

The company didn’t disclose the scale of the job losses. A person familiar with the company’s plans said they are thought to affect several thousand people. IBM had around 352,600 employees as of the end of last year, according to a January regulatory filing.

An expanded version of this report appears on WSJ.com:

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/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 119.70
+1.16 +0.98%
Volume: 0.00
July 2, 2020 4:00p
P/E Ratio
11.86
Dividend Yield
5.45%
Market Cap
$106.28 billion
Rev. per Employee
$208,845
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