Why did IBM cuts thousands of jobs including positions in sales and software and hardware divisions?”
SAN FRANCISCO — With the recession forcing tech companies to announce thousands of layoffs, IBM Corp. is joining the fray — but not advertising it. The Armonk, New York-based company has cut thousands of jobs over the past week, including positions in sales as well as the software and hardware divisions. IBM says the cuts are simply part of its ongoing efforts to watch costs, and the company won’t release specific numbers, even as reports of firings stream in from IBM facilities across the country. Workers have reported layoffs in Tucson, Arizona; San Jose, California; Rochester, Minnesota; Research Triangle Park, North Carolina; East Fishkill, New York; Austin, Texas; and Burlington, Vermont. Meanwhile, other tech companies such as Intel Corp., Microsoft Corp., Texas Instruments Inc., Sprint Nextel Corp. and Google Inc. have all publicly revealed job cuts as part of their strategies for riding out the economic crisis. More than 20,000 jobs will be lost from those companies. One of IBM
IBM plans to cut up to 5,000 more US jobs as the company moves to maintain profit in the economic downturn by moving work to India. So far this year, IBM has laid off about 4,600 employees, including workers in its software unit and sales department. The latest round of expected job cuts could start taking place today, according to Lee Conrad, national co-ordinator of unofficial employee union Alliance@IBM. Some 1,674 jobs have been cut in IBM’s application services division according to the union’s website. A further 4,000 US jobs are expected to go in the first half of this year. Offshore workers accounted for 71% of IBM’s nearly 400,000 employees at the start of the year, up from about 65% in 2006, according to The Wall Street Journal. The union has criticised IBM for taking jobs away from the US, but analysts said the strategy will help IBM win overseas contracts and maintain healthy profits in its services business. The move will also lower labour costs and enable IBM to compete m
The Armonk, New York-based company has cut thousands of jobs over the past week, including positions in sales as well as the software and hardware divisions. IBM says the cuts are simply part of its ongoing efforts to watch costs, and the company won’t release specific numbers, even as reports of firings stream in from IBM facilities across the country. Workers have reported layoffs in Tucson, Arizona; San Jose, California; Rochester, Minnesota; Research Triangle Park, North Carolina; East Fishkill, New York; Austin, Texas; and Burlington, Vermont. Meanwhile, other tech companies such as Intel Corp., Microsoft Corp., Texas Instruments Inc., Sprint Nextel Corp. and Google Inc. have all publicly revealed job cuts as part of their strategies for riding out the economic crisis. More than 20,000 jobs will be lost from those companies.
