Kyndryl Confirms Layoffs as 'No. 1 Cost Is Always Flesh and Bone'

IBM already announced layoffs impacting 3,900 employees.

Edward Gately, Senior News Editor

March 30, 2023

2 Min Read
data center frustration

Kyndryl, which spun off from IBM in late 2021, is initiating layoffs impacting a “small percentage” of its 90,000 employees globally.

The layoffs began this week. Kyndryl sent us the following statement:

“We are eliminating some roles globally – a small percentage – to become more efficient and competitive. This is in addition to the ongoing transformation work we have undertaken to streamline and simplify our processes and systems. These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth.”

Layoffs Leave One Kyndryl Worker Relieved

Kyndryl employees took to to voice their frustration.

“I believed the propaganda about the company trying not to worry about the stock price and wanted to get it right,” said one displaced worker. “Nothing has been done showing that is the case. I have a sense of relief after getting laid off and can find a better fit for my skills.”

Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.

Another U.S. worker who got a pink slip said 75% of those on the list are ages 55 and older.

“It doesn’t take an MBA to see that it’s not a profitable business. IBM let it go for a reason, and the No. 1 cost is always the flesh and bone,” one worker said. “I would expect a 2-5% cut, which would be in line with everyone else jumping onto the cuts trend. I bet clients don’t know the risks that the company is introducing to their environments, and I expect them to lie about it or present some sort of fantasy about resilience? It sure feels like the headwinds of a recession.”

IBM Previously Announced Layoffs

In January, Reuters reported IBM would let go of 3,900 employees. The layoffs planned between January and the end of March stem from IBM’s spinoff of Kyndryl and Watson Health. IBM’s job cuts came despite reporting fourth-quarter revenues of nearly $16.7 billion; that beat expectations of $16.4 billion.

Kyndryl is an IT infrastructure services provider that designs, builds, manages and develops large-scale information systems. It was created from the spinoff of IBM’s infrastructure services business.

Kyndryl is among the more than 20 companies doing business in the channel that have cut workers since the start of the year. On Tuesday, Rackspace confirmed it’s cutting 275 employees, citing the ongoing macroeconomic downturn.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email Edward Gately or connect with him on LinkedIn.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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