IBM and SAP have announced that they will be cutting thousands of jobs as they reorganize their businesses and brace for a significant economic slowdown. The news comes after other major tech companies such as Microsoft and Google parent Alphabet announced that they will be downsizing their workforces to combat the global economic outlook.
Why it matters: These layoffs, among others, mark a significant shift for executives as many leaders had prioritized holding onto their workforce after struggling to hire employees in a tight labor market the last few years.
- IBM will be letting go of 3,900 staff and SAP will lay off 2,800 employees in total, costing both companies close to $300 million each this quarter.
- Layoffs are increasing across the tech industry and are not expected to cease anytime soon.