IBM Job Cuts to Impact More than 240 Workers in California

Written by Edward Gately
June 10, 2020

Numerous other companies in the channel have also shed workers this year.

IBM job cuts are coming next month at three of its locations in California.

According to WARN notices filed with the California Employment Development Department, IBM is cutting 103 workers at its Costa Mesa site. Among the jobs being eliminated are software developers, project managers, computer operators, sales specialists, senior management support and others

Also, 140 workers are losing their jobs at two IBM facilities in San Jose. Most of the workers losing their jobs are software developers. Also, research staff members are among the impacted workers, as well as two vice presidents.

IBM couldn’t be reached for comment on the layoffs.

The layoffs are permanent and the employees’ last day will be July 20. There are no “bumping rights” at any of the locations, IBM said.

Displaced Employees Promised Benefits

Affected employees are eligible for a range of services and assistance to support them through this transition, the company said. Elements include both payment and continuing benefits, as well as access to outplacement services, retraining assistance, personal financial planning and career counseling for the employee, and personal counseling services for employees and their family members.

For its first quarter of 2020, which ended March 31, IBM reported $17.6 billion in revenue, down from $18.2 for the same quarter in 2019. Profit totaled $1.17 billion compared to $1.6 billion for the year-ago quarter.

Nearly 353,000 employees worked for IBM and its wholly owned subsidiaries as of last year.

IBM is the latest company in the channel to shed workers this year. VMware, Google Cloud, T-Mobile, CenturyLink, AT&T and Hitachi Vantara also initiated layoffs this year. Read our latest Telco-IT Layoff Tracker for more details.

Last month, IBM announced new elements in the IBM Business Partner program, representing the biggest overhaul of the program in a decade. They cover three themes: partner growth, increased partner collaboration with IBM and new tracks for success. And, the focus centers on hybrid cloud.