IBM has experienced 22 consecutive quarters of declining revenue, making cost-cutting and streamlining initiatives imperative.
In a bid to reportedly reduce costs, IBM has embarked on a plan to cut jobs across the UK and Ireland as part of a larger initiative to save money on the wages of its personnel.
The Register broke the news in an exclusive, revealing a memo that pointed to around at least a hundred staff being axed through the process of a 45 day consultation.
“It is announced today that we are forming an Employee Consultation Committee (ECC) to represent the permanent employee population of the IS Delivery business areas in the UK,” the memo reportedly said, detailing intentions to converse on “proposals for the organisation to meet its business objectives”.
According to The Reg, IBM concluded the memo with thanks for continued support, saying that “it is vital that we continue to provide a first class service to our customers”.
IBM seemingly has no choice but to make bold cost-cutting moves given the fact that it recently experienced its 22nd consecutive quarter of declining revenue. Most recently the tech giant came close to climbing out of the deepening pit in the last quarter, spurring on efforts to get back on the straight and narrow.
Job cutting from IBM is not unfamiliar, with the company engaging in waves of process in recent years. In 2016 its shift to cloud and analytics resulted in thousands losing their jobs across the United States. The Reg also previously disclosed IBM’s intention to source up to 80 per cent of Global Technology Services staff from comparatively less expensive parts of the world.
Despite failing revenue, IBM has continued to compete on the centre courts of technology developments in many cutting edge areas. Blockchain and quantum computing stand out as examples, with IBM putting its name to some significant strides forward in the spaces.
In regard to quantum computing, IBM recently announced that it had reached the 50-qubit milestone, a coveted position in quantum computing, with 50-qubits considered the necessary point at which disruptive power can be harnessed.