IBM has reportedly launched a voluntary redundancy program, encouraging employees to step forward as the company undergoes another round of global job cuts. The layoffs are expected to target positions in Europe as IBM aims to streamline its operations.

During a Q4 earnings call last month, IBM referred to the layoffs as a "resource action," emphasizing that the initiative is viewed as "transformative" rather than purely financial.

IBM CFO James Kavanaugh stated last month that the company's goal is to achieve a "$3 billion annual run rate in savings by the end of 2024," a significant increase from the original target.

According to reports, approximately 80% of the reduction target is focused on Enterprise Operations & Support (EO&S), Q2C missions, and Finance & Operations. Employees have been informed that around 50% of IBM's reduction goal will impact staffing levels across Europe.

The company prefers employees opting for voluntary redundancy to be laid off, rather than involuntarily terminating those who wish to remain. An IBM spokesperson mentioned during a Q4 earnings call that the workforce rebalancing charge represents a very low single-digit percentage of IBM's global workforce. They expect to exit 2024 with roughly the same level of employment as the beginning of the year.

The spokesperson explained that the rebalancing is driven by increases in productivity and the company's ongoing effort to align the workforce with the skills most in demand among clients, particularly in areas like AI and hybrid cloud.

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