Reseller News

IBM denies tech redundancy rumours

CHANNEL sources have said that IBM New Zealand engineers have been made redundant as a result of the purchase of Logical CSI and Logical Networks. However, the vendor will not confirm this specific development except to say there has been a small number of redundancies.

“As we indicated at the time of the Logical CSI/IBM integration there have been a small number of redundancies,” an IBM spokesperson says.

“This is entirely consistent with the guidance we gave to our employees, industry analysts, customers and the media at the time of the acquisition. The integration of the two businesses is progressing according to schedule.”

He would not answer direct questions as to how many staff have been let go or whether they were IBM engineers.

Reseller News sources claim they are specialist mainframe staff; akin to what happened when Hewlett-Packard bought CSC.

Further, IBM told Reseller News there would be no redundancies, save for the odd administration person, following the purchase of the Logicalis companies. This is contrary to Big Blue’s latest statement, as published in the April 16 issue of Reseller News.

At the time the IBM spokesperson was Jeremy Seed, who said IBM was not asking Logical CSI staff to apply for their jobs; instead, the company was conducting staff meetings and issuing employees questionnaires so it could do a stock take of skills. Administration and other areas that have duplication may lose jobs, he said.

Meanwhile, IBM has sold the channel arm of Logical CSI to business partner Integral Technology Group. The vendor will retain Logical CSI’s network services business.

According to a company statement, IBM managing director Nick Lambert says: “IBM’s strategy is to partner with independent value-added resellers. IBM is not in the business of owning its channel. We have a long and successful working relationship with Integral, a top performing IBM business partner.”

Integral managing director David Sutherland says the purchase supports Integral’s plans for future growth.