Report: IBM Considering 30 Percent Reductions In Global Technology Services Staff, Redeploying Thousands Of Services Professionals


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IBM is evaluating substantial workforce reductions in its Global Technology Services division that involve moving tens of thousands of employees to other parts of the company or letting their positions expire when they leave, according to report published Thursday by technology news website The Register.

Citing a confidential chart prepared by Bain & Company, a management consultancy brought on by Big Blue to help restructure the business, The Register reports plans for some 30 percent of IBM's service delivery and technology professionals to be "productively redeployed" in 2018.

Such a strategy, which IBM has not confirmed, will impact 30,900 Big Blue employees overall, of which more than 10,000 are in the U.S., according to the leaked document.

[Related: IBM Unveils Power9 Microprocessor Along With New Servers Geared For AI]

GTS is the IBM internal unit that offers hardware and infrastructure consulting services.

IBM told CRN it is not commenting on the report detailing the plan to restructure its workforce.

IBM has for years now been in the midst of a major transformation of its business and has focused efforts on retraining its workforce to meet emerging client requirements. The tech stalwart headquartered in Armonk, N.Y. has pledged $2 billion for training and development of U.S. employees through 2020.

Of the GTS positions being eliminated, just more than 10,000 will be classified such that they will eventually come off the books through attrition, meaning new hires won't be made once the current employees leave.

 

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