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Friday, 27 May 2016

Looking for a job? IBM has 20,000 openings

(CNN) - If you're on the job hunt, IBM has a few openings.
And by a few, we're talking 20,000.

IBM is transitioning from a software business to a company in the cloud.
As such, it's laying off workers that don't have the skillset needed in the new direction.
Last month, the tech giant said it would pink-slip an unspecified number of people in the legacy businesses.

But, they'll hire just as many.

About 7,000 positions are posted online, and the company said there's more coming.
IBM was a bit late to the cloud party, but is now a major player, raking in over $10 billion in sales last year.

Those new bodies can't come fast enough. IBM has rattled off 16 straight quarters of sales declines and last month it announced its worst quarterly sales since 2002.
It wasn't so long ago that IBM was predicting that its profit would reach $20 a share by the end of 2015. That proved to be way too ambitious -- IBM posted earnings of just $14.92 at the end of 2015. (IBM abandoned that $20 target in the third quarter of 2014).

The company was ill-prepared for its customers' sudden warm embrace of cloud computing. Why buy big, expensive IBM mainframes and servers when you can pay Amazon or Microsoft to house all your data for you -- for cheaper? Why spend money on software for your computers, when those programs can be hosted in the cloud?

Over the past several years, IBM has attempted to shift its strategy. It is now a major cloud player, racking up $10.2 billion in cloud sales last year. And it has poured millions of dollars into big data analytics, mobility and security. Its most notable project that fits the "new IBM" bill is Watson.
IBM said sales of those "strategic imperatives" are growing fast -- up 26% in 2015.

But steering a ship as big as IBM in a new direction takes a lot of time. IBM's executive leadership says it expects that its strategy will pay off soon, but Wall Street analysts aren't expecting IBM's sales to grow for at least another couple years.

Despite all the hiring, IBM is getting significantly leaner. IBM employed about 434,000 people when Ginni Rometty took over as CEO in 2011. Its headcount is now below 378,000.

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