IBM Layoffs Impact Multiple Divisions as Company Expands Operations in India

IBM is restructuring its workforce, affecting Cloud Classic and other divisions while expanding hiring in India.

IBM plans to lay off some 9,000 workers in the US as part of a global reorganization initiative. The company has not formally revealed the extent of the layoffs, but according to sources The Register reported, several divisions will be affected, including IBM's Cloud Classic segment, which was a holdover from its 2013 acquisition of SoftLayer.

Teams working in internal systems, cloud infrastructure, sales, consultancy, and corporate social responsibility will also be impacted. There have been reports of layoffs in a number of places, including California, Dallas, Texas; New York City and the state of New York; and Raleigh, North Carolina.

It could be a part of a bigger plan by IBM to move jobs from the US to India, where IBM has a strong presence in Chennai, Hyderabad, Bengaluru, and Pune through the years. Reports say that IBM has more outsourcing jobs in India than in the US, displaying an inclination by the corporation to reduce expenses as well as harness its talent pool in the country.

In the past, CEO Arvind Krishna has recognized India as a major talent pool, particularly for positions in infrastructure, sales, consulting, and cloud computing. According to reports, starting in late April, the remaining US-based staff will have to report back to work at least three days a week, with badge swipes being tracked.

The action is part of IBM's ongoing effort to reorient its global workforce strategy, striking a balance between cost-effectiveness and retaining a pool of highly qualified personnel in various geographical areas.