IBM Planning 10,000 Job Cuts in Europe Ahead of Unit Sale
- is planning to cut about 10,000 jobs in Europe in an attempt to lower costs at its slow-growth services unit and prepare the business for a spinoff.
- IBM announced the job cuts in Europe earlier in November during a meeting with European labor representatives, according to a union officer briefed on proceedings.
- IBM said in October it’s planning to spin off the business and focus on its new hybrid-cloud computing and artificial intelligence unit, which the company hopes will return it to revenue growth.
- IBM was already cutting jobs earlier this year, although the company wouldn’t say how many positions were being eliminated.
- The spin-off of its services unit is the first big move by Chief Executive Officer Arvind Krishna, who took over from Ginni Rometty in April and has been pushing to revive growth after almost a decade of shrinking revenue.
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