Report: IBM going ahead with more U.S. job cuts today

Report: IBM going ahead with more U.S. job cuts today

Summary: Unfortunately for Big Blue and its employees, this just marks yet another round of layoffs -- one of several in the last few years.

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IBM is said to be handing out pink slips to a large chunk of its U.S. employee base on Wednesday, according to Bloomberg.

The news agency specified that the cuts will target all levels of seniority from entry-level to the executive suite.

See also: EMC and VMware to cut 1,800 posts worldwide | AMD to cut 15 percent of workforce, sees weak Q4 ahead

Unfortunately for Big Blue and its employees, this just marks yet another round of layoffs -- one of several in the last few years.

The job cuts come as part of a global restructuring plan that was announced back in April.

In France, for example, IBM is planning to eliminate 1,226 jobs in the region within two years.

At that time, IBM also saw its share price suffer its biggest one-day drop in eight years following a disappointing first quarter.

Bloomberg cited analyst forecasts that the Armonk, N.Y.-headquartered corporation will be laying off anywhere between 6,000 and 8,000 employees worldwide -- close to two percent of its total workforce.

The goal is to save approximate $1 billion in expenditures for the company.

Topics: IT Employment, IBM, Tech Industry

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14 comments
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  • and this is why people no longer care about

    studying engineering or anything IT/STEM... time to stop blaming the wotkers , corporate welfare takers, and the other issues destroying the economy
    HypnoToad72
  • You forgot the other half

    IBM is hiring off shore at half the wages of their American workers.
    NoAxToGrind
    • true

      half to a third... and im one of those people based in asia.
      Wils Cheng
  • wait a bit!

    Just recently, they (IBM and other mega corporations) have been complaining that they can not find 'talent' in US and the congress needs to increase the H1B visa quota ?
    IBM is becoming a rotten lying dinosaur!
    LlNUX Geek
    • @ Linux Geek

      You are blaming a corporation for problems introduced by public economic policies and the macroeconomic policies formulated by the Fed.

      The pace of technological innovation in America slowly has been declining for sometime. As the difference between each innovation becomes smaller and if competent and equivalent innovation can occur at other places for same output and lower cost, then those jobs will move.

      Another factor is the declining need for capital replacement as capital depreciation itself slows down. A PC or a Server or a Network lasts 5 to 10 years these days. And that includes all sorts of hardware, software and services.

      So what is the use of developing newer products when people will not buy at the same rates due to macroeconomic factors, higher cost of product and capital saturation?

      What we are witnessing is the destruction of labor capital since all of the above 3 factors cause existing equipment capital to be used better and more and longer.

      Wait till another year and we will start to look at Apple complaining that not many previous Apple product buyers are interested in buying new Apple products.

      This is a topic not often studied in Macroeconomic Theory. But Robert Solow probably came close to it with Growth Theory.
      calahan
      • Good points, and the point to the reasons that PCs haven't been selling

        as well as in the past.

        The economics issues related to lower sales are always disregarded when someone wants to mention that a product is outdated or not as popular anymore. Lower PC sales are related to economic factors all over the world, and the fact that, PCs don't need to be refreshed so often anymore, and not as often as tablets and smartphones.
        adornoe
  • ObamaCare is killing us

    Everyone who can is getting away from the oppressive healthcare cost that have been shoved down our throats. This is pushing jobs off shore faster than anything else in recent memory. Higher taxes and a failed administration does not help with confidence in the US economy either.
    davidde@...
    • davidde - another braindead

      tea party maggot. Our private healthcare has the highest cost and lowest quality in the civilized world. Start using your brain for something other than memorizing and regurgitating the intellectual vomit spewed by Fox TV.
      BillFerreira
      • With Obamacare, the costs will be even higher, and much lower quality,

        and everybody in the know, be it people in the medical field and in economics, all point to the massive number of new problems coming from Obamacare.

        But, it's not just the higher costs and the lesser quality that are coming. Coming with Obamacare will be a higher rate of unemployment, since businesses won't be hiring because of the increased costs of Obamacare.
        adornoe
    • Nonsense. Utter nonsense.

      Since The AWOL Drunkard was in the White House, IBM's been moving jobs out of the country http://www.pbs.org/cringely/pulpit/2003/pulpit_20030807_000781.html and trying to lay IBM's look-good-to-the-stock-market plan http://betanews.com/2012/04/28/why-is-ibm-sneaking-around/ at the feet of Mister Obama is utter nonsense.
      K7AAY
      • The worst president in history, and the economy to prove it...

        http://www.forbes.com/sites/peterferrara/2013/06/02/economically-could-obama-be-americas-worst-president/

        It's a no-brainer that Obama has been the worst president in history, and one that should never have even been considered for the highest office in the land. He's the equivalent of a mail-clerk being elevated to CEO at IBM.

        Obama and the democrats, and their economic policies, which have been in effect for decades, are the reasons that so many corporations have had to move operations and jobs overseas. The facts are easily seen everywhere, and the economy continues to get worse, even as some companies like IBM report "record profits".
        adornoe
  • Silly political trolls

    The original authors had some great insights and then came the silly political right wing trolls. Hey trolls, unemployment was 4.2 % when President Bush came into office. He then cut taxes with the billing it would create jobs. The unemployment level increased and it never went below the rate that was recorded when Bush entered office. Job creation would mean unemployment went down, not up. After 11 years of tax cuts the future looks like long term unemployment and high unemployment with low tax rates. What happened?
    Darryl Crouch
    • OBOT Alert!!!!

      Did you perchance hear about 9/11? Unemployment increased due to the abundance of fear in our country during the Bush administration. Get a clue, Obot!
      jminnihan
  • The end is nigh?

    From Seeking Alpha, who are usually pro-IBM; Given the stresses and strains on IBM's (IBM) operating model, a day of reckoning appears to be fast approaching. It won't be the end of the company per se, but it'll be the end of their business model as it's currently configured. The company reports earnings one week from today (July 17), and if it's anything like the Q1s report, shareholders should brace themselves. It could get ugly.
    billpeter