The director of Red Hat announced in an internal corporate newsletter about the impending reduction of hundreds of jobs. Currently, the headquarters of Red Hat employs 2,200 people, with another 19,000 working in branches worldwide. The exact number of job cuts has not been specified, only that layoffs will take place in several stages and will not affect employees involved in product development and direct sales to clients.
The staff reduction is driven by negative forecasts regarding upcoming profits. For instance, in the last quarter, Red Hat's revenue grew by 8%, which is perceived as a slowdown in growth, as the company had shown an average growth rate of around 15% since 2019.
Additionally, it is worth noting that at the beginning of the year, IBM, which owns Red Hat, announced layoffs of 3,900 employees, but subsequent information indicated that the number of layoffs had increased to 5,000. Given that a few months prior, IBM had hired 7,000 new employees, some analysts explain the layoffs as a way to reduce excess staff hired due to a labor shortage during the economic rebound following the pandemic.
Source: opennet.ru
