As per a filing with the state Department of Labor, IBM will lay off 84 jobs at an operations hub at Fountain Plaza, a part of the state’s Buffalo economic development initiative.
Big Blue has notified Computer Task Group (CTG), which serves as a subcontractor, that IBM is ‘prematurely ending a contract Anthem Insurance on August 31, triggering the layoff on that date. CTG has provided services to IBM to staff a help desk for Anthem.
IBM created the Hub in 2015 as a 55 million USD Buffalo Billion economic development initiative, promising to bring over 500 highly skilled tech jobs to the city by November 2021.
But, the company failed to produce the high-paying and highly-skilled jobs that it envisioned for the site.
Most of the roles at the IBM hub, which was part of 55 million USD the state’s Buffalo Billion economic development initiative, were not highly paid, such as programmers or software developers, or data analysts.
Instead, most roles at the Hub are in a pair of call centers that provide technical support services. One is a state help desk that moved from Albany. The other is the call center that CTG operates for Emblem that will shut down by the end of August.
CTG did not comment on the number of employees working at the IBM site after the IBM layoff of 84 roles.
The state spent 55 million USD on the project, including 30 million USD to acquire the software for its use. It used 25 million USD to purchase seven floors in the Key Center for the IBM facility and then build and equip it.
However, the tech hub is developing slowly, so four floors are currently up for lease. The floors that are up for lease, covering the 9th to 12th floor, have a total of 60000 square feet of space.
The state proposed the Hub and envisioned it with high-end technology jobs, but it heavily relied on help desk and call center jobs.
The 500-job commitment includes roles from IBM and companies like CTG working with the tech giant on projects at the Buffalo center or providing services and support.