IBM is planning to announce a new round of layoffs, with 5,000 US based workers being cut in favor of shifting some of the work to India.
The new round of layoffs, expected to be formally announced Thursday, represent about 4% of IBM’s US based workforce of approx. 115,000 people, according to the Wall Street Journal. This is the second round of cuts this year for IBM, having cut thousands of jobs back in January.
The controversial aspect will be the offshoring; IBM has a big presence in India and has previously replaced US workers with workers based in India who demand far lower wages. It’s believed that many of the jobs being cut this week will also shift to India, although the exact number isn’t known.