Report: IBM cutting over 1,000 jobs

Report: IBM cutting over 1,000 jobs

Summary: IBM, one of the world's largest companies, is letting go of more than 1,000 employees across North America.

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TOPICS: CXO, IBM, IT Employment
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IBM is letting go of more than 1,000 workers across the United States and Canada on Tuesday, according to Bloomberg.

Another report from Information Week, also published on Tuesday, suggests the number of cuts is closer to 800. However, IBM has refrained from announcing an official number.

Most of the job cuts are said to have been within the United States -- especially the Global Technology Services outsourcing unit -- amidst IBM's reorganization.

On Monday, IBM was said to have cut more than 250 jobs across the U.S. already.

IBM spokesman Doug Shelton informed Bloomberg that the layoffs will enable IBM to "remain competitive and relevant in an industry that is constantly changing."

Computerworld reports that even more layoffs this week remains a possibility.

Interestingly, the depressing news comes just after a bright note for IBM, which was just hailed by Gartner as the leader in the server market share race as of the end of the fourth quarter of 2011.

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Topics: CXO, IBM, IT Employment

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16 comments
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  • No surprises, just jobs moving to India

    HP laid off thousands and hired replacements in India, so did IBM. Even in times of growth and good profits, the layoffs keep coming.
    terry flores
    • Not even on a 1403

      WHat are you talking about, "growth and profits"? Did you even read the article? 4th Quarter sales fell off a cliff. When that happens, you start running around asking the customers what's going on. And if they tell you, "Our budgets are being cut. Looks like bad weather ahead," you start handing out the pink slips. It's not like government where you just print all the money you want.
      Robert Hahn
  • Obama's failed policies are to blame

    for layoffs because the taxes are too high and regulations too tight.
    The Linux Geek
    • Is it also true that thanks to Obama's policies things are getting better?

      Question, does the President elected by the people of the United States also get credit for the improving economy? Was ANY one laid off prior to Obama's policies, you know like under Bush? If you are a Christian read Acts 2:44-45, and tell us what you think of those FIRST acts.........
      dennis7x@...
      • what credit?

        the economy was better under Bush. Obama has other books than the Bible to read like the Koran or some Karl Marx economics.
        The Linux Geek
      • Yep. Will you lead by example and sell all your goods first?

        I didn't think so...
        baggins_z
      • outsourcing

        @The Linux Geek The outsourcing started way before 2008. The problem has very complex roots.
        pupkin_z
    • wrong

      There is no other nation in the developed world with less Work regulations. Look at Canada, Australia or Western Europe, even Japan

      ...Who do you wanna compare with? Vietnam? Do you wanna be the new Vietnam?
      zdwater
      • You're even more "wronger"...

        No other nation on earth has as many regulations in the books that corporations have to comply with than, the U.S., which has thousands of those regulations and which are strangling the economy.

        Now, would you mind proving your assertion that, the U.S. has fewer regulations than those other countries?

        The fact is that, we are losing our production to other countries because, many of those countries have few, if any, regulations to hamper production.
        adornoe
      • @adornoe

        Give up your wages, vacation time, sick time, and every other form of "regulation" - since those are the ONLY regulations that these "job creators" whine about, and then see what happens. Walk the talk of the side you are championing, then we'll talk.
        HypnoToad72
      • HypnoToad72: Get a clue about reality already...

        The job related issues you mention have always been issues for employers, but, they've never been the killers to those companies as the other issues which have become more crippling to those companies.

        When it comes to labor, organized or otherwise, the cost to businesses has been going steadily higher for many decades, to the point that, many of them were struggling to stay in business or actually going out of business. Oftentimes, for many of those businesses to remain viable, the easier solution is to cut staff or pay lower salaries. That's been very evident in the last 4 to 6 years, where unemployment has gone up drastically as employers had to downsize.

        Staffing for businesses has always been the biggest cost, or one of the biggest. And, with a lot of other costs of doing business getting higher or new costs getting added, many of those businesses had to look for the means to lower their total costs of doing business.

        Many of those new higher costs are associated with the thousands of new regulations that businesses have to comply with, and which can be very draining to any company. No regulation comes without a price to a business that is affected by it, and with the costs of regulations, businesses often have to cut back or look for ways of controlling those costs. To many companies, the easier way out, and one that can save them huge money, is outsourcing of production and hiring foreign workers.

        Then, there is the union labor, which most corporations would rather not have to deal with, since, those corporations have to give up a lot of control over personnel, and that staff always ends up being higher priced with the demands for higher salaries and bigger benefits. Those are facts that can't be denied.

        Then, there is the matter of having to pay higher corporate taxes, and when compared to taxes that other countries demand, it's another no-brainer for corporations to send their business to those other countries.

        So, when it comes to foreign competition for our production and for our jobs, we have become uncompetitive. With salaries being much higher in the states, and with union labor being so demanding, and with the much higher costs in the states with the huge number of regulations, and with taxes being much higher in the U.S., and with other costs being so much higher (like real-estate), then, no one can blame any company for taking their business and jobs elsewhere.

        No company exists just for the sake of creating jobs or to pay taxes to government. Nobody is going to invest in creating a company if the rewards don't warrant doing so. And nobody is going to remain in business if their costs of doing business make it impossible to make a profit and/or to grow.

        Even I, at one time, condemned the practice of sending our jobs and our production plants overseas, but, when the reality is examined, I too had to come around and understand the reasons. And believe me, I'm speaking from experience, since, I too was downsized out of 2 different companies, and my jobs went to overseas workers or H1B hires. I was bitter about those cases, but, I also understood.

        Things are not as simple or as cut-and-dried as they first appear.

        However, there are many things that can actually be done to bring back a lot of those jobs and production. But, the changes have to occur at government levels, and I don't mean government forcing those companies to bring back those jobs.

        Government has to take a few steps back in order to make us competitive again.
        adornoe
  • Regulations, eh?

    So, IBM is laying off more US workers? Again? And none overseas? What? They're adding headcount in India? I'm shocked! Shocked, I tell you! Insofar as all the irrelevant blather about regulations is concerned, it's totally bogus. There is one reason, and one reason only, that IBM is laying off US workers. That is because it is cheaper to pay their overseas workers by orders of magnitude. That is why Apple and all the other technology firms manufacture as much of their product line overseas as they do, and are constantly looking for more reasons to do so. Regulations have nothing to do with it, unless you consider that the US minimum wage is higher than India and China, by law, and most of their overseas workers make less than that. So just cut out all the crap about regulations. It's a red herring, and you know it.

    If IBM could cut its US workforce to the CEO and his secretary, it would do so in a heartbeat, without a second thought. This is the mentality that drives these companies, and all their whining about regulations is just a subterfuge to take away peoples attention from the fact that, by the time they're all done, there will be no jobs or manufacturing or support in the US any more at the terminus of this process, so they want to move all their assets overseas before everyone catches on. Regulations, my butt! Global labor arbitrage is the name of the game, nothing more, and nothing less.
    thetwonkey
    • Somewhat right, but mostly wrong...

      Apparently, you've never had to run a business, where, you have to control costs in order to turn a profit or at least to survive.

      The other big part, which you and so many others don't understand is that, the owners of a business are not in business to just create jobs and to pay taxes. Most businesses executives have to answer to the owners of those business, namely, the stockholders. Without those stockholders, who risk their money in a stock/company, many of those companies would not even have the means to get started. Now, once the investment is made, the shareholders are not going to be content with just keeping the company in operation and not producing a profit.

      There is a lot more to running a company than just paying the CEOs and secretaries, and, your "cluelessness" was quite evident in that post of yours above.

      (I don't have the time right now, but, I'm not done with this post, and I'll try to finish my comments tomorrow). Meanwhile, you should try to read up more on what the real reasons are for companies taking the route of offshoring/outsourcing.
      adornoe
  • Your were saying..........

    Please spare me the Business 101 pedantry, as I find it insulting. Just because I have never run a business doesn't mean I don't know about business, and I really don't care to hear you trot out more information about what it takes to run one. I know full well about profitability and cost control, and don't need a lecture on it. I was merely stating the fact that global labor arbitrage is one of the primary driving forces in all multi-national businesses, and if you think that can be justified with business "morals", fine. You can waste your time further elucidating your point of view, but it is, in the end, your point of view, and nothing more. You may fire when ready. BTW, try to understand the use of hyperbole and sarcasm before you go all pedantic on me. Have a nice day.
    thetwonkey
    • Businesses are not about morals. They are about profits.

      Even if it comes at the expense of workers, and then griping because nobody has money to spend. (The workers don't seem to understand, so maybe the employers don't, either...)
      HypnoToad72
    • Careful what you think you know, because, you sound very ignorant...

      (The following is a re-post from another post of mine above, but, I think it's just as relevant here, and I don't want to rethink or reword that post).

      The job related issues you mention have always been issues for employers, but, they've never been the killers to those companies as the other issues which have become more crippling to those companies.

      When it comes to labor, organized or otherwise, the cost to businesses has been going steadily higher for many decades, to the point that, many of them were struggling to stay in business or actually going out of business. Oftentimes, for many of those businesses to remain viable, the easier solution is to cut staff or pay lower salaries. That's been very evident in the last 4 to 6 years, where unemployment has gone up drastically as employers had to downsize.

      Staffing for businesses has always been the biggest cost, or one of the biggest. And, with a lot of other costs of doing business getting higher or new costs getting added, many of those businesses had to look for the means to lower their total costs of doing business.

      Many of those new higher costs are associated with the thousands of new regulations that businesses have to comply with, and which can be very draining to any company. No regulation comes without a price to a business that is affected by it, and with the costs of regulations, businesses often have to cut back or look for ways of controlling those costs. To many companies, the easier way out, and one that can save them huge money, is outsourcing of production and hiring foreign workers.

      Then, there is the union labor, which most corporations would rather not have to deal with, since, those corporations have to give up a lot of control over personnel, and that staff always ends up being higher priced with the demands for higher salaries and bigger benefits. Those are facts that can't be denied.

      Then, there is the matter of having to pay higher corporate taxes, and when compared to taxes that other countries demand, it's another no-brainer for corporations to send their business to those other countries.

      So, when it comes to foreign competition for our production and for our jobs, we have become uncompetitive. With salaries being much higher in the states, and with union labor being so demanding, and with the much higher costs in the states with the huge number of regulations, and with taxes being much higher in the U.S., and with other costs being so much higher (like real-estate), then, no one can blame any company for taking their business and jobs elsewhere.

      No company exists just for the sake of creating jobs or to pay taxes to government. Nobody is going to invest in creating a company if the rewards don't warrant doing so. And nobody is going to remain in business if their costs of doing business make it impossible to make a profit and/or to grow.

      Even I, at one time, condemned the practice of sending our jobs and our production plants overseas, but, when the reality is examined, I too had to come around and understand the reasons. And believe me, I'm speaking from experience, since, I too was downsized out of 2 different companies, and my jobs went to overseas workers or H1B hires. I was bitter about those cases, but, I also understood.

      Things are not as simple or as cut-and-dried as they first appear.

      However, there are many things that can actually be done to bring back a lot of those jobs and production. But, the changes have to occur at government levels, and I don't mean government forcing those companies to bring back those jobs.

      Government has to take a few steps back in order to make us competitive again.
      adornoe