Enlarge /. Unlike the illustrative man in this photo, HPE, IBM, and other company layoff workers may not even be able to see their effects in offices that are closed due to corona virus.
The COVID-19 crisis hits almost every market sector, and dominoes are beginning to fall. While other small, medium, and large corporations are finally cutting back on business or closures, technology companies that rely on corporate customers suffer heavy losses and layoffs.
Both Hewlett-Packard Enterprise and IBM have announced significant cost-cutting measures this week, including wage cuts and significant job losses.
IBM announced its layoffs late Thursday. In a statement, the company said that the "highly competitive market requires flexibility to constantly shuffle high-quality skills," which in this case means that you no longer value the skills that a significant number of employees add to the social distant table brings.
IBM, like many companies currently facing cutbacks and layoffs, was not in the best financial position before the COVID-19 success. The company's CEO, Arvind Krishna, has been with the company for decades, but did not take the lead until April, saying that at the time he was focused on building the parts of the company that support and are supporting cloud computing and artificial intelligence ready to move away from the rest.
IBM didn't disclose how many jobs were cut, but both the Wall Street Journal and Bloomberg News report that thousands of employees in five states were affected: California, New York, North Carolina, Missouri, and Pennsylvania.
Employees who spoke to Bloomberg on condition of anonymity reported that entire teams were being cut, and mentioned receiving severance packages. IBM said in a statement that it would offer affected employees subsidized medical care for the next 12 months.
HPE announced its cost-cutting plans as part of its latest quarterly report on Thursday. The company will cut some salaries until at least October 31, with executives seeing wage cuts of 20 to 25 percent. The company, like younger tech brothers like Facebook and Twitter, says it will continue to save money by doing long-term remote work and allowing some offices to be closed.
Although the company expects layoffs, management has not specified which departments or how many jobs are at stake. The company currently said it was working "on the details" over the next few months to determine what made sense for the company.
The older, more robust companies are not alone. Modern tech starts like Uber and Lyft have fired thousands of workers to respond to growing consumer demand in the plague year 2020.