IBM to cut thousands in coronavirus fallout: Report
- CEO has promised 5% dividend
Layoffs at International Business Machines were likely to affect thousands of North American workers, Bloomberg reported Thursday.
IBM’s job cuts were spread across at least five states, leaving longtime employees suddenly out of work as the coronavirus pandemic has chilled the economy.
Employees in California, Missouri, New York, North Carolina and Pennsylvania were affected, according to the report.
The Armonk, New York-based tech company didn’t immediately respond to questions from FOX Business.
“IBM’s work in a highly competitive marketplace requires flexibility to constantly add high-value skills to our workforce,” a company spokesperson told Bloomberg. “While we always consider the current environment, IBM’s workforce decisions are in the interest of the long-term health of our business.”
IBM will offer subsidized medical coverage to the cut employees through June 2021, he told Bloomberg.
The company withdrew its annual forecast last month as the pandemic slowed software sales. But CFO James Kavanaugh told Reuters then that the company still had plenty of cash and most of its revenue comes from industries less impacted by the virus, like health care and telecommunications.
Earlier this month, CEO Arvind Krishna said IBM wouldn’t even be cutting its 5 percent dividend.
"I believe that we actually have enough financial stability, including a secure dividend," Krishna previously said on FOX Business Network's "Mornings with Maria." "The dividend is occupying a little bit more than half our free cash flow. It's not like it's occupying all of it, and that leaves enough flexibility for us to do it."
https://www.foxbusiness.com/markets/ibm-cuts-thousands-of-jobs-report