IBM Cuts Thousands of Jobs, Cloud Classic Unit Hit Hard: Report

IBM is laying off thousands of employees across the United States, with approximately 25% of staff at its Cloud Classic operation affected, The Register reports, citing a source. "Concrete numbers are being kept private," a source told the publication. "It is in the thousands." Staff reductions have occurred in Raleigh, North Carolina; New York; Dallas, Texas; and California, the report said. Affected departments include consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams. The report adds: With regard to IBM Cloud Classic -- the infrastructure-as-a-service (IaaS) outfit offering built on IBM's 2013 acquisition of SoftLayer -- another source told us: "It's a resource action. I don't know how many people are in IaaS classic. They don't typically make that information easy to find. What I can say is that they have been making a lot of changes to shift employment to India as much as possible." A third source, newly let go by Big Blue, said it was fair to characterize this a layoff. "Everyone I know that was affected, myself included, was simply offered a separation agreement," this individual said, estimating that 10 percent of the Cloud group (which is not the same as Cloud Classic) has been let go.

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