Technology giant IBM is preparing to slash 10,000 jobs across Europe. The implementation of job cuts will allow the company to lower costs ahead of its spinoff. That said, the costs will also reduce at its slow-growth services unit.
IBM spokeswoman in a statement told the media ““Our staffing decisions are made to provide the best support to our customers in adopting an open hybrid cloud platform and AI capabilities. We also continue to make significant investments in training and skills development for IBMers to best meet the needs of our customers.”
In October, the technology giant was preparing for a spinoff and it plans to direct its focus into hybrid cloud computing. The job cut will severely impact IBM’s legacy IT services business. This business unit handles day-to-day infrastructure operations, which comprises managing client data centres and traditional information-technology support for equipment installations, operations and repairs.
It appears that the job cuts will also impact 20 percent of the company’s staff in Europe. In fact, the UK and Germany will see the highest level of job cuts as part of the plan, while Poland, Slovakia, Italy and Belgium will also face consequences.
It is reported that the company had 352,000 employees serving clients across 170 companies. The major portion of the job cuts will take place across the legacy IT services business. The layoffs will affect positions like client execs, digital sales and hearing tech sales among others.