Big Blue Issuing Thousands of Pink Slips Amid Restructuring

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ibm layoffs job cuts workforce restructuring computer technology
Chris Hondros/Getty Images
By Andrew Berry

Computer-giant IBM has begun the process of laying off employees in the U.S. as part of a worldwide restructuring plan estimated to cost about $1 billion, Bloomberg reports.

Back in April, the Armonk, N.Y.-based company announced plans to reduce its workforce after their first-quarter results fell short of expectations. According to a source speaking to Bloomberg on condition of anonymity, employees ranging from "rank-and-file staff to executives" will be laid off.

Lee Conrad, national coordinator for IBM employee organization Alliance@IBM, told Computerworld that about 1,200 employees in IBM's Systems & Technology group have been laid off, in addition to 200 employees in the research division. Last week, Alliance@IBM said that around 2,800 in software and sales and distribution were laid off, although there is no way to be completely sure of the total number, considering IBM reportedly won't release that information.

"IBM should be as forthcoming as all the other companies," Conrad said. "We just simply don't understand why they are keeping it a secret and neither do the employees."


IBM (IBM), for its part, refuses to get into specifics about the layoffs.

"Change is constant in the technology industry and transformation is an essential feature of our business model. Consequently, some level of workforce remix is a constant requirement for our business. Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans," IBM spokesman Doug Shelton said in a statement.

"IBM is investing in growth areas for the future: Big Data, cloud computing, social business and the growing mobile computing opportunity. The company has always invested in transformational areas, and as a result we need to remix our skills so IBM can lead in these higher-value segments in both emerging markets and in more mature economies."

Judging by the $1 billion reduction cost, IBM is cutting 6,000 to 8,000 jobs worldwide, Oracle Investment Research analyst Laurence Balter told Bloomberg, meaning that the layoffs will affect less than 2 percent of IBM's workforce, which totals 434,246.


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23 Comments

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p60342

Another mega-company succumbs to the whims of Wall Street number-crunchers..... what a shame!

June 13 2013 at 10:56 PM Report abuse -2 rate up rate down Reply
Steffen Jobbs

No sweat. These employees are likely white and skilled so they'll have no problems at all getting new jobs. You won't see any of these laid-off workers applying for jobs at Burger King or Target. They'll probably end up with better paying jobs than what they earned at IBM. They'll just take it in stride and take a short summer vacation before looking for another high-paid job.

This is definitely a great thing for shareholders. When a company starts getting rid of useless employees during a restructuring, the share price usually rises by 5% or so. I'm sure investors are cheering for IBM to lay off even more employees. They'll be cheering and saying, "Chop off the dead wood." They can even give the CEO a raise for having the foresight to terminate useless meatbags.

June 13 2013 at 7:23 PM Report abuse -5 rate up rate down Reply
1 reply to Steffen Jobbs's comment
rohrscheibcroh

your out of you mind an what a comment . there are people working fast food with degrees because they can not find anything . you just keep thinking this are good

June 13 2013 at 10:17 PM Report abuse +5 rate up rate down Reply
rich lapinski

So much for that upbeat U.S. economy article they posted.

June 13 2013 at 7:19 PM Report abuse +2 rate up rate down Reply
1 reply to rich lapinski's comment
sam54ct

Been out of the country? m IBM has had layoffs in most years since the early 1980's. In particular when they sold their personal computer division to the Chinese under Bush.

June 13 2013 at 9:40 PM Report abuse rate up rate down Reply
jgcitygin

First they lay people off. Then those alligned with them accuse them of being lazy, shiftless and on the dole. So that they can destroy them and take all the resources of the earth for themselves...
and destroy the planet anyway.
Wow. What a power trip.

June 13 2013 at 6:57 PM Report abuse +2 rate up rate down Reply
abcadams1

Big Blue ain't so Big and ain't so Blue, People dress casual now and most times, the Blue Suit is gone. Also, the company is no longer number one in computers and typewriters are gone.

June 13 2013 at 6:45 PM Report abuse rate up rate down Reply
Fred

Not to worry folks, theses layed off people can get a job with our U S Goverment spying on us.

June 13 2013 at 5:35 PM Report abuse rate up rate down Reply
majbjb

This is no problem! The gov't has some good news/bad news that makes up for all these high paying/high tech jobs lost (supposedly)....They just released figures that thousands of new jobs have been created last month. That's the good news. The bad news is that these jobs are mostly part time McDonalds and Walmart workers......Welcome to hope and change....

June 13 2013 at 4:55 PM Report abuse +2 rate up rate down Reply
avanticrzy

T.J. Watson is rolling in his grave to see what the bean counters have done to his company.............

June 13 2013 at 4:12 PM Report abuse +1 rate up rate down Reply
mimsysc

Its the great economy,,,,,,,

June 13 2013 at 3:57 PM Report abuse +2 rate up rate down Reply
chain.link1

"Change is constant in the technology industry and transformation is an essential feature of our business model. "

Code for shipping jobs to China.

June 13 2013 at 2:15 PM Report abuse +2 rate up rate down Reply
1 reply to chain.link1's comment
sam54ct

IBM did that when they sold their personal computer division to Lenova during the Bush administration years.

June 13 2013 at 9:41 PM Report abuse +1 rate up rate down Reply