Unlike IBM, many other tech companies are transparent about upcoming layoffs. HP last year under a new CEO announced that it would get rid of about 9,000 workers, while Cognizant a few weeks later said its payroll would be slashed by about 7,000. Uber Technologies, Airbnb and TripAdvisor also have been forthcoming with their large layoff numbers.
“Many companies are firing people today,” says Ronn Torossian, CEO of communications firm 5WPR, which represents many Fortune 500 companies. “The more forthright they are about it the better.”
IBM cited competitive reasons for not being forthcoming with its total number of cuts. “IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” said IBM spokesman Ed Barbini. “Recognizing the unique current conditions, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021.”
But, IBM’s approach makes little sense and will only draw more attention as to why the company is not more transparent, Torossian said. “It’s a mistake to think you can fire thousands of people and not answer questions,” he said. “And it’s not just the media asking questions; it’s investors, remaining employees and customers as well.”