Menu
Report: IBM poised to cut more US jobs

Report: IBM poised to cut more US jobs

Deep cuts said to be coming in global services

IBM is planning to cut "a large number" of U.S. jobs in its Global Business Services division, with many positions being switched over to workers in India, The Wall Street Journal reported Wednesday, citing anonymous sources.

The reported cuts would be just the latest round made by IBM in recent months as the global recession continues.

IBM does "not comment on rumor or speculation," said spokesman Doug Shelton.

If US Global Business Services jobs are shifted to India, they will likely be positions such as application maintenance, application development and network management, versus on-site ERP (enterprise resource planning) implementation jobs, according to Forrester Research analyst Paul Roehrig, who said that he hadn't personally seen the Journal's report.

Lee Conrad, national coordinator of the Alliance@IBM/CWA Local 1701, a union that has been trying to organize IBM workers, said the group has been expecting US cuts to the global services unit for some time.

The union has heard that 4,000 jobs will be affected, "but we don't have any confirmation, as usual," Conrad said. Canadian IBM workers are telling the union that they are hearing the rumors as well, he said.

"What really bothers us is that if there's work in India, there's work here," Conrad added.

But outsourcing is an inevitable trend given the globalized economy and the tremendous economic pressures companies are facing due to the recession, according to Roehrig.

"As businesses become more technology-abled, more and more work will land where it can be done for less," he said. "Getting there is just devastatingly difficult [for affected workers], and there's no way to diminish the amount of pain."

IBM had 398,455 employees at the end of 2008, up from 386,558 at the end of 2007, according to its most recent annual report.

Meanwhile, IBM is also reportedly set to spend billions to acquire Sun Microsystems, a move that would add thousands of employees to its rolls. Neither company has publicly confirmed such talks are ongoing.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IBMredundancies

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments