"These Resource Action (RA) notifications tell staff that they have 30 days to find another position within the company or they will be let go, with a few months of severance pay. Most of those on notice will not find new positions and will leave the company. We've heard from insiders and former employees that the target headcount reduction is about 45 percent within IBM's US infrastructure group."
"Another source said more than 50 percent of IBM's US Cloud group - which is part of the Infrastructure organization under SVP Ric Lewis - is expected to be let go. Two former employees who still have contacts within the company speculated that the cuts are likely a result of middling results in the cloud business, and Lewis's promise of profitability in the infrastructure business this year."
IBM began notifying several thousand employees with Resource Action (RA) notices that give staff 30 days to find another internal position or face termination with a few months of severance. Sources indicate targeted headcount reductions of about 45% in the US infrastructure group and more than 50% in the US Cloud group. Insiders attribute cuts to middling cloud performance, profitability targets for infrastructure, and ongoing offshoring to India. Anonymous RA reports appeared on forums like The Layoff and Reddit. IBM provided a statement estimating a low single-digit percentage global impact, equating to roughly 2,700–5,400 workers based on 2024 headcount.
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