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Slowdown Blues: After Cognizant, IBM India fires 300 employees from services division

Last August, IBM had asked as many as 200 of its senior employees to quit, making way for juniors to grow

twitter-logo BusinessToday.In   New Delhi     Last Updated: May 14, 2019  | 22:32 IST
Slowdown Blues: After Cognizant, IBM India fires 300 employees from services division

Tech behemoth IBM India has reportedly fired nearly 300 employees from its services division as it looks to "re-invent" its operations and fulfill the changing demand of the customers. The US-based IT major let these employees go as it focuses on emerging technology like Artificial Intelligence and reduces exposure to traditional services.

The development is in accordance with IBM's strategy to re-invent itself to meet the changing need of the business, the Economic Times quoted an IBM spokesperson as saying.

An IBM spokesperson told the leading daily, "This is in accordance with IBM's strategy to re-invent itself to better meet the changing requirements of our business and to pioneer new high-value services."  

The spokesperson added that IBM remained committed to being an essential part of its (India's) growth.

Last year in August, the company asked as many as 200 of its senior employees to quit, making way for juniors to grow.

Also Read: Cognizant fires 200 senior level employees; offers them up to 4 months of severance payout

Jobs cuts are becoming evident in the IT sector, with US-based IT services company Cognizant firing as many as 200 of its senior employees last week. The company asked its senior level employees to leave as they could not adjust to the "changing environment" of the company by giving them three-fourth months of severance package.

The reason behind firing is believed to be Cognizant's focus on "newer digital requirements", the Times of India reported, adding the company would bear around USD 35 million in severance payout to these employees, who include director and above level employees.

Edited by Chitranjan Kumar

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