The COVID-19 crisis is affecting almost all sectors of the market, and now the dominoes are beginning to drop. As other small, medium, and large companies scale back or close forever, technology companies that rely on business customers are suffering large losses and laying off staff.
Both Hewlett-Packard Enterprise and IBM this week announced significant cost-cutting measures, including cut wages and significant job losses.
IBM announced its layoffs Thursday night. In a statement, the company said that "the highly competitive market requires flexibility to constantly mix high-value skills," which in this case means deciding that it no longer places high value on the skills that a significant number of employees bring to the market. the socially distant table.
IBM, like many companies now facing cuts and layoffs, was not in the best financial position before the COVID-19 coup. The company's CEO, Arvind Krishna, has been with the company for decades, but only came in first in April, saying at the time that he was focused on building the parts of the company that support cloud computing and artificial intelligence and was ready to get away from the rest.
IBM did not specify how many jobs were cut, but both The Wall Street Journal and Bloomberg News report that thousands of employees were affected in five states: California, New York, North Carolina, Missouri, and Pennsylvania.
The employees, who spoke to Bloomberg on condition of anonymity, reported that entire teams are being phased out and mentioned that they received severance packages. IBM said in a statement that it would offer subsidized health coverage to affected employees for the next 12 months.
HPE also announced its cost reduction plans on Thursday as part of its most recent quarterly earnings report. The company will cut some wages at least through October 31, and executives will see pay cuts of 20 to 25 percent. The company, like younger tech brothers like Facebook and Twitter, says it will save more money by embracing long-term remote work, allowing it to close some offices.
Although the company hopes to make layoffs, the company's leadership did not specify which divisions or how many jobs are at stake. For now, the company said it is "working on the details in the next two months,quot; to determine what makes sense for the business.
The oldest and strongest business firms are not alone. Modern tech startups like Uber and Lyft have laid off thousands of workers in response to growing consumer demand during the year of the plague 2020.