By Nicholas BeggsThe Wall Street Janausta article IBM, the world’s largest technology company, announced plans to cut more than 200,000 jobs as it faces a deepening recession.
The announcement was the latest in a series of moves that have hurt the company’s business and stock price in the last year, and has prompted a series on the lessons IBM has learned from its own failures.
Read MoreIBM has been grappling with the cost of its massive data center in California since late last year.
The company is struggling to keep up with demand for its cloud computing and other technology as it tries to adapt to a changing economy and a growing population.
IBM’s stock is down more than 40% since last year and its shares have lost nearly 40% of their value in the past year.
Read moreIBM said Thursday that it would lay off roughly 100 employees, about 10% of its workforce.
The company will make the layoff announcement at its corporate headquarters in San Jose, California.
The news comes just a few weeks after the company announced layoffs at its manufacturing facilities in North Carolina and Virginia.
The news came after IBM revealed last week that it has made $2.5 billion in revenue and generated $6.9 billion in profits last year compared with the year before.
But the company has faced criticism for not paying workers enough for overtime and other benefits, as well as for a lack of transparency about its cost structure.
The layoffs could cost the company more than $2 billion in additional costs, according to an IBM spokesperson.IBM, the biggest employer in the United States, has been struggling to stay afloat in the face of a shrinking workforce.
It has had to lay off workers, cut back on employee training and reduce its workforce to help it keep pace with the population growth.
The cuts are a major blow to the company.
A recent report by the Economic Policy Institute found that IBM has been shedding more than 2,700 workers in the first half of this year.
“The loss of at least half of the IBM workforce is the first step towards reducing IBM’s workforce to near-capacity levels,” wrote John Taylor, senior fellow at the institute, in a blog post Thursday.IBD, the company behind the IBM Cloud, said that it was cutting up to 5,000 employees from its workforce of roughly 8,000 people, as of December 31.IBF, the parent company of IBM, said it will lay off around 2,500 workers in 2017, with another 1,500 to be announced this week.
“As a result of the current downturn, the business and the management team is working hard to ensure that IBM continues to meet its commitments and meet our expectations,” a statement from the company read.