IBM Cuts Thousands of Jobs, Cloud Classic Unit Hit Hard: Report

IBM is laying off thousands of employees across the United States, with approximately 25% of staff at its Cloud Classic operation affected, The Register reports, citing a source. 'Concrete numbers are being kept private,' a source told the publication. 'It is in the thousands.'

Staff reductions have occurred in Raleigh, North Carolina; New York; Dallas, Texas; and California, the report said. Affected departments include consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams. The report adds: With regard to IBM Cloud Classic -- the infrastructure-as-a-service (IaaS) outfit offering built on IBM's 2013 acquisition of SoftLayer -- another source told us: 'It's a resource action. I don't know how many people are in IaaS classic. They don't typically make that information easy to find. What I can say is that they have been making a lot of changes to shift employment to India as much as possible.'

A third source, newly let go by Big Blue, said it was fair to characterize this a layoff. 'Everyone I know that was affected, myself included, was simply offered a separation agreement,' this individual said, estimating that 10 percent of the Cloud group (which is not the same as Cloud Classic) has been let go.

Read more of this story at Slashdot.