IBM slashes jobs quietly

IBM slashes jobs quietly

By SiliconIndia   |   Thursday, 29 January 2009, 03:40 Hrs   |    3 Comments
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San Francisco: The downturn attack has made IBM resort to the same pink slip saga like many others but without the publicity. The company has slashed thousands of people including positions in sales, software and hardware areas.

The company refused to give exact numbers claiming the job cuts to be a part of their ongoing efforts to check on rising costs and doesn't have to break out its layoffs in regulatory filings unless it suddenly changes course and makes substantially more or fewer job cuts. The IBM employees have reported layoffs in Tucson, Arizona, San Jose, California, Rochester, Minnesota, Research Triangle Park, North Carolina, East Fishkill, New York, Austin, Texas, Burlington and Vermont. It considers its job cuts a regular part of the company's business model, since thousands of jobs are cut every year but are usually added back in other places.

One of IBM's biggest rivals Hewlett-Packard Co is also laying people off. HP is shedding 24,600 jobs, nearly eight percent of its 3,20,000 employee work force, as it digests the acquisition of Electronic Data Systems.

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Reader's comments(3)
1: With the US and UK now having strikes and action to protect the workforce IBM is expected to shed jobs where there will be less publicity. Sam and Obama are seen to be 'working together' which generally means no more US job cuts unless iBM wants to see its tenders evaporating.

IBM will make cuts in areas where it finds that it is suddenly more expensive like India, and where there is no job protection (India) and move the jobs to a cheaper cost base (China).

Indias days of being 'cheap' are over, India is now one of the 'Developed' nations and needs to turn to innovation and new products, being IBMs or anyone elses Chai Wallah will not protect Jobs
Posted by:John Adams - 01 Feb, 2009
2: Upen,

Its tough to say, the downturn is good for growing economies like ours, for instance, if budget of IBM's 100 member team in US is 6 Million $, in India it would be costing $ 1 Million .. so logical, Indian Units will be the last ones to see firing.
Posted by:Abhi - 29 Jan, 2009
3: any job cut without being known by the world is rare.. IBM deserves the credit for this. so how many would it be firing in india?
Posted by:upen - 28 Jan, 2009