IBM announces their newest server, the Z15 which is assembled in Poughkeepsie.
IBM is layingÂ off employees as the country struggles with the economic implications of slowing the spread of coronavirus.
The Armonk-based company did not specify how many people had been laid off or which facilities are impacted, though representatives said job reorganization was alluded to during previous earnings discussions. That includesÂ last month’s first quarter report in which it reported a drop in revenue and withdrew its full-year projects in the wake of the pandemic.
New York is among the states impacted according to multiple news outlets, as well asÂ California, MissouriÂ and Pennsylvania. The company noted it reviews its workforce each year.
“IBMâs work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,”Â the company said in a statement provided by spokesperson Tim Davidson. He noted, “Recognizing the unique current conditions, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021.”
IBM has locations in Poughkeepsie and Yorktown. Both sites have been heavily involved in the company’s push into quantum computing, and Poughkeepsie is where Big Blue’s z Systems mainframes are designed and produced.
The cuts come two months after CEO Arvind Krishna took the helm of the company from 40-year veteranÂ Ginni Rometty.
IBM’s original projections forÂ 2020 called for “sustained revenue growth.”
IBM CFO, James Kavanaugh discussedÂ “structural actions to improve the competitiveness of the Global Technology Services business” during theÂ earnings call in April, when the technology company announced it was taking a charge against earnings, said Davidson.Â
IBM for decades was the largest employer in Dutchess County. That changed with years of job cuts and its transaction with GlobalFoundries in which IBM left its East Fishkill campus.
Though cuts on the Poughkeepsie campus have not been confirmed, the changes come as Dutchess County is dealing with the economic realities of the COVID-19 pandemic.
Dutchess has lost 21,000 jobs, or 17.5% of jobs, in the service industry between April 2019 and 2020. The majority of those jobs were lost this April, said Ron Hicks, assistant county executive.Â
County officials remain optimistic in light of these cuts to the job market. IBM remainsÂ one of the regions biggest employers.
“We believe we will see a seismic shift from the heart of the New York metropolitan area to the suburbs not just of people, but of businesses. This would create new opportunity,” Hicks said.
Saba Ali: [email protected]; 845-451-4518.
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