April 26, 2023
Red Hat, a firm that offers the Linux distribution and is presently owned by IBM, has revealed plans to reduce its employment by less than 4%, resulting in less than 800 job cuts.
Red Hat CEO Matt Hicks stated that the job layoffs would be mostly in general and administrative jobs, as well as other related functions across all divisions, and would take place in the following months. According to Hicks, this decision was critical for the firm to remain competitive in the present market and to align its resources with its personnel size and overall strategy.
Red Hat is following in the footsteps of its parent firm, IBM, which recently revealed intentions to slash 3,900 positions in the next months, with the number potentially increasing to 5,000, according to CEO Arvind Krishna’s statement. It is unclear whether Red Hat’s job layoffs are part of IBM’s personnel reduction or whether they are a distinct operation.
IBM reported sales of $14.3 billion in the first quarter, the same as the previous year. Non-GAAP profits per share, on the other hand, dipped 3% to $1.36, while gross profit grew 3% to $7.5 billion. Red Hat, which was bought by IBM in 2019, grew at an 8% annual pace in the third quarter, but at the weakest rate since the acquisition.
The sources for this piece include an article in TheRegister.
