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IBM Announces Cuts In Marketing And Comms Teams

By Nithya Bose in Business News, posted March 13, 2024

IBM has started layoffs within its marketing and communications division, a source said.

A source told CNBC Jonathan Adashek, the company's chief communications officer, announced the move during a brief meeting.

It’s part of a broader strategy IBM has been implementing, including a significant focus on artificial intelligence training for its employees.

CEO Arvind Krishna previously said the company was “massively upskilling all of our employees on AI” after announcing plans to automate nearly 8,000 jobs.

In early 2023, IBM disclosed during an earnings call it would reduce 3,900 positions.

This effort aims to maintain IBM's employment levels throughout the year while adjusting its workforce to fit its strategic direction better.

These job cuts are happening amid a broader trend of layoffs within the technology sector.

Over 200 tech companies have announced reductions totaling almost 50,000 jobs, with IBM among those making significant changes to their workforce structure.

Despite these cuts, IBM has seen growth in recent years, though at a modest pace.

The company reported a four percent revenue increase in the last quarter compared to the previous year, exceeding earnings expectations.

The rebalancing is partly to adapt to the rapidly evolving AI market, where IBM has made concerted efforts to remain competitive.

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The introduction of WatsonX, a development studio for AI applications, is a testament to IBM's ambitions in AI.

The division focusing on generative AI and WatsonX products has seen considerable growth, doubling in size recently.

IBM's journey in the competitive landscape of enterprise AI has been challenging, with the company facing stiff competition from giants like Microsoft, Google, and Amazon.

IBM's initial slow pace in monetizing and leveraging its AI capabilities, particularly following the Watson Jeopardy victory, has been a point of reflection for CEO Krishna.