IBM Quietly Cuts Thousands of Jobs; Employees Report Signing NDAs to Keep Cuts Under Wraps
IBM Quietly Cuts Thousands of Jobs; Employees Report Signing NDAs to Keep Cuts Under Wraps  Â
IBM is reportedly conducting a large-scale layoff this week, with thousands of employees being impacted, primarily in the IBM Cloud division. According to multiple insiders and a report from The Register, the company is trying to keep the situation under wraps, with workers being required to sign non-disclosure agreements (NDAs). “Unlike traditional layoffs, this one was done in secret,” said one affected employee. “My manager told me that they were required to sign an NDA not to talk about the specifics.”
IBM has acknowledged the workforce reductions but downplayed their extent, stating in its first-quarter 2024 earnings report that a $400 million “workforce rebalancing” charge was allocated for restructuring efforts. An IBM spokesperson explained that the reductions would only represent a “very low single-digit percentage” of the global workforce. “We still expect to exit 2024 at roughly the same level of employment as we entered with,” the spokesperson said. Analysts, however, suggest the actual number of job cuts could be significantly higher than disclosed.
Last year, IBM’s CEO, Arvind Krishna, mentioned the company’s plan to replace around 7,800 jobs with artificial intelligence (AI), although no specific timeline was provided. The recent layoffs align with IBM’s broader strategy of reshaping its workforce as it pivots toward AI and other advanced technologies.
In a letter addressed to the Employment Development Department (EDD) in San Francisco, IBM’s Director of Human Resources, Lawrence Sposato, confirmed that a “permanent reduction in force” was underway at the company’s San Francisco site. Public records corroborated this statement, revealing that the layoffs primarily affected senior-level employees in the U.S., with a growing number of roles being shifted to India. “This individual’s job is headed to India, we’re told, reflecting a hiring freeze in the US,” the report noted.
Many of those impacted by the job cuts are in the 50-55 age bracket with over two decades of service. Despite a history of age discrimination lawsuits, IBM continues to assert that it does not engage in systematic age-based bias. The layoffs are targeting employees at the higher end of the pay structure, with positions ranging from L7 to L9 bands, insiders report.
The company’s financial restructuring efforts, combined with its increased investment in AI, are believed to be driving these layoffs. IBM’s stock has risen by 33% this year, reflecting investor confidence in its long-term strategy, yet the human cost of this transition is becoming increasingly evident for those directly impacted.
