Kyndryl cuts 2,000 jobs from workforce in tech downturn

Kyndryl, the IBM spinoff providing consulting and tech services, laid off 2,000 employees on Thursday. The company said the terminations are part of a process to transform and streamline its internal systems.

What they said: In a statement to Bloomberg, Kyndryl said that the cuts were a “small percentage” of its 90,000 global workforce.

• “We are eliminating some roles globally… to become more efficient and competitive.”
• “These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth.”

Declining revenue: Since being spun off from IBM in November 2021 to grow its infrastructure management and cybersecurity business, Kyndryl’s revenue has declined.

• Kyndryl reported revenue of $4.3 billion in its third fiscal quarter 2023, down 6 per cent from the previous quarter.
• Former employees suggest that the tech company already started “benching” people they no longer needed back in January.

Impact on Canadian staff

While the exact number of Canadian employees affected by the layoffs at Kyndryl remains unclear, some of those who have been let go have contacted Samfiru Tumarkin LLP to review their severance packages.

Major tech layoffs continue

Kyndryl joins the growing list of major North American tech companies that have announced sweeping layoffs in 2023.

Several big names, including Amazon, Meta, Alphabet, Dell, Clearco, Hootsuite, and Microsoft, have significantly scaled back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Severance packages for IBM employees
• Employment lawyer on recent tech layoffs and severance
• Layoffs in Canada

Termination agreements for Kyndryl employees

In Canada, non-unionized employees at Kyndryl are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for technology industry employees
• Severance for provincially regulated employees
• Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

Employers sometimes use pressure tactics to try to coerce employees into accepting poor severance packages, such as imposing a deadline for accepting the offer.

However, in Canada, terminated employees have up to two years from the date of their dismissal to pursue a claim for full severance pay.