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Red Hat has announced that it is laying off approximately four percent of its associates. “The reductions will focus on “general and administrative (G&A) and similar roles,” the announcement says.
That means about 800 Red Hatters will be looking for new jobs despite the fact that “IBM, Red Hat’s parent company, reported stellar gross profit margins in the first quarter of 2023,” says Steven J. Vaughan-Nichols at Open Source Watch.
Additionally, “revenue from Red Hat increased 21 percent year-over-year thanks to ‘good performance’ across the Red Hat portfolio,” reports Emma Chervek at SDxCentral. “IBM also gained share via Red Hat’s OpenShift Kubernetes orchestration platform and Red Hat Enterprise Linux (RHEL), which execs touted as the company’s ‘foundational hybrid cloud offerings.’”
“It’s one of the signs of our times that people are being laid off in the big tech companies to show that they’re serious about increasing revenue per employee,” notes Vaughan-Nichols, even though “layoffs don’t help companies become more profitable by almost any metric.”
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