IBM announced plans to reduce its global workforce by 1-3% during Q4 2023, potentially impacting 2,700 to 5,400 employees. Aiming to enhance operational efficiency, IBM will assess its workforce configuration, suggesting compensation in the U.S. might be filled by hiring overseas, with active job listings showing a discrepancy between India and the U.S.
This decision follows a reported slowdown in Red Hat’s growth, a critical component of IBM’s transition strategy. Although IBM’s software revenue increased by 10%, Red Hat’s growth dipped from 16% to 14%, raising concerns among analysts regarding internal execution issues. Moreover, this reduction is said not to signal financial hardship but rather a strategic move to streamline operations and focus on profitable business areas.
However, ongoing internal execution challenges remain. Analysts recommend that IBM’s corporate clients closely monitor project execution amid the organizational changes. Effective leadership and clear accountability throughout the project phases are vital to overcome potential disruptions stemming from this restructuring. If successful, these changes could enhance operational clarity rather than just reduce costs.
👉 Pročitaj original: CIO Magazine
