IBM Adds 30,000 New Jobs This Year

By Darryl K. Taft  |  Posted 2016-07-19 Print this article Print
IBM initiatives

In an email to employees, IBM's CEO Ginni Rometty says Big Blue has hired more than 30,000 new employees this year.

As it continues to work its way through its transition to higher value business initiatives, IBM also has been overhauling its workforce to focus on areas such as the cloud, cognitive computing, mobile and more.

As part of its "workforce rebalancing" effort—as IBM refers to it—the company has eliminated several positions and replaced them with new, different jobs that focus on the company's strategic imperatives.

In a July 18 email to the IBM staff, Ginni Rometty, chairman, president and CEO of IBM, said the company has added more than 30,000 new employees in the first half of this year.

The email, obtained by eWEEK, said:

"In the second quarter we also continued to make meaningful progress in how IBMers work and contribute to this success. With Checkpoint, all IBMers are getting and giving faster and more frequent feedback. 130,000 IBMers have been trained in agile, 70,000 IBMers have chosen to work with Mac products, and more than 250,000 IBMers are using Box. Almost all IBMers participated in Cognitive Build, helping 20,000 colleagues collaborate on nearly 3,000 cognitive start-up projects. And we continue to invest in our people, with IBMers benefitting from 9 million hours of learning in the first half, and with more than 30,000 new IBMers joining the company."

IBM has taken heat for layoffs in recent months. The company does not disclose details on the number of positions it rebalances. However, in a statement earlier this year, the company said: "IBM is aggressively transforming its business to lead in a new era of cognitive and cloud computing. To this end, IBM currently has more than 25,000 open positions, many in these key skills areas. If we meet our hiring targets, we expect our employee numbers to be roughly the same at year-end as they were in 2015."

That was in keeping with the information shared by Martin Schroeter, IBM's CFO, during the company's first-quarter earnings call in April where he discussed IBM's first quarter 2016 financial results. Discussing the company's second-quarter results, Schroeter noted that IBM's workforce rebalancing is about "rebalancing skills more than capacity reduction."

IBM continues to overhaul its workforce to address the emerging demands of its customers as both IBM and its customer base transforms.

This is an issue that underscores IBM's long-term commitment to growing its business and the value of its operations for shareholders, said Charles King, principal analyst at Pund-IT.

"It also firmly undermines criticism that the company has been 'cutting its way to profitability,'" he said. "Overall, this highlights how IBM is determined to evolve and expand its business on its own terms, and is willing to make the technology and workforce investments necessary to achieve its goals."


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