IBM’s managed infrastructure services spin-off Kyndryl has globally laid off employees to achieve efficiency and profitability. One-third of Kyndryl’s approximately 90,000 global employees are based in India.
The company in India has laid off employees in marketing, administration, human resources and other non-core verticals. It is providing two months of severance pay to the laid-off employees, according to reports. However, it couldn’t be determined how many employees were affected in the current round of layoffs.
Kyndryl at a global level, last week said, “We are eliminating some roles globally – a small percentage – to become more efficient and competitive. This is in addition to the ongoing transformation work we have undertaken to streamline and simplify our processes and systems. These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth.”
Kyndryl India did not comment on the effect of layoffs on Indian employees.
Revenue up 3% globally
Globally, Kyndryl reported 3 per cent revenue increase to $4.3 billion in constant-currency terms for the third fiscal quarter. The net loss stood at $106 million, in contrast to a loss of $731 million in the same period last year. It was spun -off from IBM in November 2021.
Lingraju Sawkar, President of Kyndryl India had previously said that the Indian talent pool develops platforms, builds new capabilities, and runs various services for enterprises. Its India operations are also focused on two missions. ‘Kyndryl for India’ is a mission that focuses on working with customers in India to enable them to be at the cutting edge and manage mission-critical applications and ‘India for Kyndryl’, is a mission that positions the country as an innovation hub for global customers through client innovation centers.
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Published on April 3, 2023
