Red Hat, a leading software company, will undergo a round of job cuts in the near future, according to the Director of the company. A corporate mailing was sent out to Red Hat employees discussing the upcoming reduction of positions. Currently, the company employs 2,200 people at its head office, and an additional 19,000 work in departments around the world.
Although the exact number of job cuts has not been specified, it has been confirmed that the dismissals will take place in several stages. Personnel and negative forecasts for future profits are the main reasons for the layoffs. The company’s income increased by 8% in the last quarter, considered a decline by many as Red Hat had shown an average increase of 15% since 2019.
It is worth noting that at the beginning of the year, IBM, which owns Red Hat, announced it would dismiss 3,900 employees. However, there has since been talk that over 5,000 positions will be cut. A few months before, IBM had employed 7,000 people, meaning the job cuts may be an effort to balance out the excess hiring due to a lack of labor during the economic activity growth post-pandemic.
This news has caused concern for Red Hat employees, who are unsure whether their jobs are in jeopardy. The company has yet to make any formal announcements.