InvestorQ : Why did IBM India laid off its employees? Can such thing happen to other IT companies as well?
Niti Shenoi made post

Why did IBM India laid off its employees? Can such thing happen to other IT companies as well?

Answer
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Anjali Desai answered.
1 year ago


Tech giant IBM India laid off around 300 employees from its services division. The company backs the decision with the reason of reinventing and fulfill the changing demand of the customers.

The tech behemoth is looking to re-invent its operation, more focus on growing technology like Artificial Intelligence and less on traditional services.

IBM has been operating in India for more than 25 years said it will contribute towards markable change in India's growth and development.

Market experts comment that the idea of laying off may be practiced by other IT companies as well. By looking at the fast-growing technology in India, demand for the young workforce is increasing parallelly. However, I think sacking senior employees in large number can also prove loss to the company as they are the sole source to operate the traditional system for few years for mow. Thus to look after the latest technology and prevailing system, a proper balance needs to be maintained in recruiting and sacking the company's employees.

As per the last year's report, IBM had asked around 200 senior employees to quit and paved the way for juniors to grow.


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1 year ago


This can happen more routinely that reported. It is sometimes easier to layoff older employees and hire new ones with updated knowledge than updating older ones with new technology.