The impact of COVID-19 is now beginning to show on some of the largest and most formidable companies in the world. Global technology giant, IBM joins the league of companies who have started firing employees due to the tough times wrought by the Coronavirus syndrome. IBM is the second old economy technology company apart from Hewlett Packard that has announced significant cost-cutting measures, including pay cuts and significant retrenchments. While there is no official word from IBM, other than confirming the news of lay-offs, market estimates are that these retrenchments could run into several thousands. In addition to the lay-offs, IBM will also cut some salaries through October 31. Most senior executives will be taking pay cuts of 20 to 25%. For IBM, this also has a larger purpose of realigning the skill sets of its workforce. It is moving resources to the emerging cloud business and getting rid of people who cannot be re-skilled.