IBM, the multinational technology and consulting company, has announced it is planning 10,000 job cuts across Europe, with the UK and Germany set to be the greatest impacted regions, according to Bloomberg.
The decision, which will affect 20% of the firm’s European staff, comes as an attempt to lower costs in its slow-growth services and prepare the business for a spinoff.
IBM confirmed in October that the spinoff will alter its focus towards a new hybrid-cloud computing and artificial intelligence unity, in an effort to bring a return to revenue growth.
A spokeswoman for IBM told Bloomberg: “Our staffing decisions are made to provide the best support to our customers in adopting an open hybrid cloud platform and AI capabilities.”
Heaviest hit will be the company’s legacy IT services section, which manages client data centres and traditional information technology support for installing, operating, and repairing equipment.
James Kavanaugh, CFO at IBM, said in the firm’s Q3 results: “We’re taking structural actions to simplify and streamline our business.
“We expect the fourth-quarter charge to our operating results of about £1.7bn.”
HR Wire has contacted Bloomberg for further comments.