Jakarta, IndonesiaSentinel.com — IBM lay off 1,000 employees in China following the closure of its research and development (R&D) center in the country. The mass layoffs were reported by Reuters, citing local media outlet Yicai.
IBM has yet to comment on the layoffs in China.
According to Reuters, the decision to shut down the R&D center comes amid weak demand for hardware and other challenges in high-growth markets including China.
Previously, IBM had announced layoffs in its marketing and communications divisions as part of a broader strategy to integrate artificial intelligence (AI) into roles traditionally performed by humans.
CNBC International reported that IBM’s Chief Communication Officer, Jonathan Adashek, informed team members about the layoffs in a seven-minute meeting.
This decision aligns with IBM’s ongoing strategy to significantly incorporate AI into its operations. In December, IBM CEO Arvind Krishna stated that the company would “upskill employees to use AI” after announcing plans to cut 8,000 jobs, replacing them with AI capabilities.
In a meeting with shareholders last January, IBM revealed it had already cut 3,900 jobs.
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“In the Q4 earnings report, IBM disclosed plans for a workforce rebalancing, affecting a single-digit percentage of our global HR staff. We expect to end 2024 with a workforce size comparable to the beginning of the year,” IBM told CNBC.
IBM is not alone in its layoffs; other tech giants have continued mass layoffs this year. So far, 204 tech companies have implemented mass layoffs in 2024, impacting nearly 50,000 employees. Alphabet, Amazon, and Google have also continued their layoff programs into early 2024.
(Ray)
