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NewsPoster Jun 13, 2013 04:32 PM
Layoffs wrack IBM; 1300 workers cut from US workforce, 8000 coming
IBM yesterday commenced layoffs in the US, with a round of 1,300 people now looking for work. The move begins IBM's previously announced global restructuring plan that began in April after bad first quarter financial results. The restructuring is expected to cost the company $1 billion worldwide, including severance expenses and other one-time charges related to the layoffs.<br />
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Union coordinator Lee Conrad of Alliance@IBM reported that "Just about every division at every location is being impacted, everything's getting hit." Layoffs have been confirmed in Raleigh, NC; assorted locations in NY; Austin, TX, and Burlington, VT.<br />
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In a statement by the company made yesterday, IBM claimed that "change is constant in the technology industry and transformation is an essential feature of our business model. Consequently, some level of workforce remix is a constant requirement for our business. Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans."<br />
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Oracle Investment Research analysts Laurence Balter believes that the restructuring will ultimately lead to 8,000 cuts worldwide, less than two percent of IBM's total workforce, which numbers nearly 435,000. IBM has cut 1,000 jobs in European countries since the announcement of the trimming measures.
iphonerulez Jun 13, 2013 06:20 PM
This is wonderful news for investors and shareholders. It could boost IBM stock to $210 per share. One of the best things for shareholders is when a company starts trimming the fat and chopping off all the dead wood from the trunk. Get rid of all the redundancy and end up with a cleaner and fitter company. Those employees getting the axe are well-educated and have plenty of skills, so they won't have a difficult time finding another job. You won't find any of them needing to work in a fast-food chain. Skilled workers are always in demand. They can just consider this a short summer vacation for a month and then go back to work in the fall. Now would be a good time to buy IBM stock before it rises.
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