It’s no secret that technology companies have been hit hard by the pandemic and its effects on the global economy. And now, two of the biggest names in tech are making dramatic job cuts. IBM and SAP are both slashing thousands of jobs to reduce costs as they cope with the changing landscape. In this article, we will explore what is causing these job cuts, how they will affect the respective companies, and what this means for the future of tech.
Job cuts at IBM
In a move that will see thousands of jobs lost, IBM and SAP have announced plans to cut staff. The cuts come as the two companies look to streamline their operations in the face of declining demand for their products and services.
IBM will be cutting an estimated 8,000 jobs, with most of the cuts taking place in its sales and marketing divisions. The company is also seeking to reduce its costs by asking employees to take voluntary redundancies.SAP, meanwhile, is looking to cut up to 4,000 jobs globally. The German software giant has been hit hard by the slowdown in the global economy, with its share price falling by over 30% since the start of the year.
The job cuts at IBM and SAP are just the latest in a wave of redundancies that has swept across the technology sector in recent months. With demand for tech products and services waning, many companies are looking to reduce their costs by cutting staff.
The reason for the job cuts
The job cuts are a result of the two companies’ restructuring efforts. IBM is aiming to focus on growth areas such as cloud computing and artificial intelligence, while SAP is looking to reduce costs.
How the job cuts will affect employees
The job cuts at IBM and SAP will have a profound impact on the employees affected. The majority of the cuts are coming in IBM’s Global Technology Services (GTS) unit, which employs around 100,000 people worldwide. This unit is responsible for managing the company’s IT infrastructure and providing other services to clients. The unit has been struggling in recent years, as more companies move to cloud-based services.
In addition to the GTS cuts, IBM is also cutting jobs in its Systems Hardware group and Software group. These groups employ around 30,000 and 40,000 people respectively. The Systems Hardware group makes servers and other computer hardware, while the Software group develops and sells software products.The job cuts at SAP are focused on the company’s sales and marketing divisions.
These divisions employ around 12,000 people globally. SAP is cutting jobs in these areas due to a shift in its strategy towards selling more software products through the cloud.zThe impact of these job cuts will be felt by employees across the world. IBM and SAP are both cutting jobs in Europe, Asia, and the Americas. The job cuts will result in significant layoffs in countries like India and China, where both companies have a large presence.
What employees can do after being laid off
After being laid off, employees may feel like they have nowhere to turn. However, there are a few things that employees can do in order to get back on their feet.First and foremost, employees should reach out to their network of contacts. Although it may be difficult, networking can be a great way to find a new job. Employees should also update their resume and LinkedIn profile.
This will make them more attractive to potential employers.Finally, employees should take some time to assess their career goals. What do they want to do with their life? What are their passions? Once they have a better understanding of what they want, they can start looking for jobs that align with their goals.