Layoffs hit IBM spinoff Kyndryl, triggering memories of Big Blue job cuts

RESEARCH TRIANGLE PARK – Kyndryl, the IBM spinoff focusing on consulting and other tech services, is cutting jobs. And some employees are comparing the layoffs to their days as part of Big Blue where job cuts became a nearly annual occurrence – and layoffs were made in January.

“I was notified yesterday – so much for the company saying they would not be like ibm and do layoffs -didn’t take them long to follow the layoff path anyway – sad to say,” wrote one employee at a post via TheLayoff.com.

“US got hit today,” warned another on Wednesday. “Other Countries to follow this week.”

Kyndryl is an international company with a good number of former IBM personnel in the Triangle.

Layoffs have hit the tech sector heavily so far this year, with cuts made at many of the largest firms from Amazon to Meta and more.. According to Layoffs.fyi, which track job cuts. 536 tech companies have made more than 157,000 job cuts in 2023.

IBM beats Street and remains upbeat about growth – but will cut jobs

However, a layoff notice has not been filed with the state of North Carolina as of Wednesday evening.

The company, which spun off from IBM some 18 months ago, confirmed the job cuts to Bloomberg News, describing the layoffs as a “small percentage” of its workforce.

Kyndryl has some 90,000 workers.

“These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth,” a spokesperson said.

‘Voluntary’ resignations, 6 months pay

According to a post at TheLayoff, Kyndryl is seeking “voluntary” resignations.

“Subject to consultation, it is our intention to offer a voluntary scheme in order to minimize any involuntary redundancies. Whilst it is Kyndryl’s policy to offer statutory minimum redundancy payments, any voluntary separations where initiated by Kyndryl will be on prevailing Kyndryl terms at the time of offering,” A Kyndryl statement was quoted as saying.

Severance packages include six months pay, the note explained:

“Kyndryl’s voluntary separation package will be addressed during consultation, but it is our intention to offer a payment of 6 months’ Reference Salary (prorated for part time employees and inclusive of any statutory redundancy payment), subject to entering into an appropriately worded settlement agreement. Please note this information is only provided as an indication at this stage, and is subject to consultation with the employee representatives.”

Job reductions, according to Kyndryl, are focused on what it described as “functions:”