IBM is Firing Over 1,000 of its Employees

It’s a grim time for some IBM employees as they may not have a job soon.

IBM confirmed this week that it will be cutting a small percentage of its employees. The confirmation came shortly after TheLayoff, an online message board, reported the job cuts.

According to a source familiar with the situation, the job cuts will represent just half of a percent of the company’s employees. The last proxy statement from IBM stated the company had over 340,000 employees. The cut will affect roughly 1,700 of them.

“We are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM,” said a company spokesperson to CNBC in an email.

One user on TheLayOff wrote, “I got my RA letter today. After being rebadged to IBM after IBM took over infrastructure responsibilites, 18 months later I’m here. Being 57 doesnt help much either.”

Since the year began, shares of IBM are up about 16%.

The company is in the process of trying to acquire Red hat, an open source software company, for $34 billion. The deal is expected to close in the second half of 2019.

It was in early June that Evercore ISI analysts Amit Daryanani and Irvin Liu discussed how important the Red Hat acquisition is and said, “While IBM stock will likely be range bound near-term, as investors remain on the sidelines until they have better understanding of IBM’s financial profile post close of the Red Hat acquisition, our positive stance is based on our favorable view of the RHT deal which has the potential to be transformational as it significantly broadens IBM’s capabilities and customer reach.”

Disclaimer: We have no position in IBM (NYSE: IBM) and have not been compensated for this article.