press trust of india
NEW DELHI, 16 JUNE: International Business Machines (IBM) has initiated a global restructuring plan by laying off almost 2,800 employees in North America so far and more job cuts are in offing in other nations like India.
The restructuring plan, announced in April after releasing disappointing first quarter results, will cost IBM $1 billion worldwide, including severance expenses.
Earlier this year, IBM chief financial officer (CFO) Mark Loughridge in an investor call had said the US-based firm will embark on a “workforce re-balancing”, or job cuts, that will cost about $1 billion and the bulk of which would be outside the USA.
IBM employed a total of 434,246 people globally at the end of 2012.
When asked about the total number of lay-offs that will happen, employee group [email protected] international coordinator Mr Lee Conrad said so far 2,200 jobs have been cut in the USA and Canada, but that will climb up.
According to [email protected], the official national IBM employee’s union, the total number of lay-offs in North America as of 15 June 2013 is 2,792.
On lay-offs in other geographies, he said the figure is still not clear, but the union is in touch with their counterparts in other countries.
“We are also working with IBM unions in other countries to formulate a response and possible workplace actions,” he added.
People closely following the developments have revealed that the total figure could be in the range of 6,500 to 8,000.
“The lay-off reports that are coming out, however, suggest that the total number of cuts would be less than two per cent of IBM’s total headcount,” they added.
When contacted, an IBM spokesperson said: “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 re-mix our skills so that IBM can lead in these higher-value segments in both emerging markets and in more mature economies.”