Business & Finance
04:39 PM
Connect Directly

IBM Cuts Jobs At U.S. Facilities

A small number of workers are being let go this week as part of IBM's 2-year-old plan to cut 10,000 to 13,000 jobs worldwide.

IBM on Tuesday cut a number of jobs at U.S. facilities in what a spokesman called a "workforce rebalancing."

"It's something we do from time to time," said the spokesman, who added that the action affected "only a small number of workers." A source with knowledge of the job cuts said a total of 1,315 IBM employees were laid off Tuesday, many from within the company's infrastructure services group. IBM's spokesman was unable to immediately put an exact figure on the number of layoffs or specify the locations affected.

IBM maintains operations in numerous states across the country, including New York, Kentucky, North Carolina, Florida, Connecticut, and California.

Some IBM workers who posted comments Tuesday on a Web site operated by a group that wants to unionize employees at the tech vendor said the cuts are running deep in some departments. "This is the big one everyone was worried about," wrote the anonymous worker.

Others indicated that many of the cutbacks are in the company's Global Services unit, which provides outsourcing and consulting offerings and has moved a number of key operations to India in recent months.

One worker who posted a comment on the site, operated by Alliance@IBM, said he was one of 45 employees to get the ax at his location Tuesday. Another said that layoffs are in progress at an IBM facility in East Fishkill, N.Y.

IBM's spokesman said the job cuts are related to the company's effort to redistribute its workforce from low-growth to high-growth areas. The plan was unveiled two years ago, when IBM said it would cut 10,000 to 13,000 jobs worldwide. IBM took a charge against earnings of $300 million last year primarily to cover costs associated with those cuts.

While IBM is eliminating jobs at some U.S. locations, it's adding employees in others. The company this year plans to build a new call center in Indiana that will employ up to 500 workers, the office of Indiana Gov. Mitch Daniels said Monday.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 27, 2014
Who wins in cloud price wars? Short answer: not IT. Enterprises don't want bare-bones IaaS. Providers must focus on support, not undercutting rivals.
Flash Poll
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Howard Marks talks about steps to take in choosing the right cloud storage solutions for your IT problems
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.