Workforce Reductions
In 2020, the IBM business now known as Kyndryl undertook workforce reductions—referred to as “workforce rebalancing”—in order to “improve the profit and margin profile of the business,” according to the SEC filing (resulting in the $800 million charge mentioned previously).
“We took these structural actions to simplify and optimize our operating model,” Kyndryl said in the filing.
The filing did not disclose how many employees have exited the business in connection with the workforce reduction actions. Kyndryl reports having approximately 90,000 employees worldwide.
In the second quarter of this year, Kyndryl saw a “modest margin expansion resulting from the productivity actions taken in 2020 to improve the profit and margin profile of the business,” the filing says. “We continue to expect the majority of the employee exits to be completed by the end of 2021.”
