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 said last week: “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.

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. Lingraju Sawkar, President of Kyndryl India, had previously said the Indian talent pool develops platforms, builds new capabilities, and runs various services for enterprises. Its India operations are also focussed on two missions.

‘Kyndryl for India’ is a mission that focusses on working with customers in India to enable them to be at the cutting edge and manage mission-critical applications’; ‘India for Kyndryl’ is a mission that positions the country as an innovation hub for global customers through client innovation centres.