IBM begins layoffs in cost-cutting drive
A labor group say 1,300 US workers have lost their jobs, and lots more worldwide could also get slashed.
According to Bloomberg News, IBM (IBM) has cut 1,300 jobs in the U.S. as CEO Ginny Rometty tries to rein in costs. The layoffs include 222 people in marketing and 185 in semiconductor research and development, Lee Conrad, a coordinator for Alliance@IBM, which has tried for years to organize the tech giant's workers, told the news service.
IBM, which is taking about $1 billion in charges to slash its payroll in the current quarter, confirmed the job cuts to Bloomberg, but not the specific figures.
Divining the impact of the layoffs on IBM is tricky because the company stopped disclosing the number of workers it employs in the U.S. a few years ago after critics accused it of sending good-paying U.S. jobs to lower-cost countries.
Worldwide, it had about 434,000 employees as of year-end 2013. One analyst Bloomberg quoted estimated that as many as 8,000 workers may lose their jobs globally in this current round of cost cuts. Most of the affected workers would be outside the U.S.
Rometty, the first woman to head the iconic tech company, is under pressure from Wall Street to improve Big Blue's financial performance after it recently posted its first earnings report that fell short of investors' expectations since 2005. Many of IBM's businesses struggled. Services, once a reliable cash cow, saw a 4% decline in revenue. Software sales were flat, and its hardware business plunged 17%.
The company is now in a bind. Since its struggles are well known, IBM's customers won't be shy about asking for discounts before agreeing to buy its software, hardware and services. That will put even more pressure on IBM's profit margins as Rometty tries to right the ship.
Jonathan Berr does not own shares of the listed stocks. Follow hm on Twitter @jdberr.
The company lost so much great talent, so much embedded knowledge, just to save a buck. It is a terrible place and I would advise anyone entering the workforce to avoid it at all costs.
It was the greatest Company in the World when I worked there in the 60's - 80',s and it didn't get $1.00 in federal tax subsidies.
I guess it should have renamed itself IBM Oil, then it'd be getting billions like Exxon, Mobile, etc,. etc.
Or IBM Ag would have worked as well, unfortunately.
But it had, and has, too much class to be a leach on American taxpayers.
CALL IT A PUBLIC WORKS PROGRAM!!!!!
WE COULD CALL THEM ALL BORDER PATROL RECRUITS!!!!!
THIS WOULD GIVE THEM FENCE JUMPIN MONGRELS AN AUDIENCE INSTEAD OF WASTING MORE TAX DOLLARS ON CAMERAS THAT APPARENTLY DON'T ACCOMPLISH A THING!!!!!
It is sad that such a one time great company is now left with downsizing as it's only means for making forecasted profit numbers. This trend unfortunately has been going on at IBM for the last several years. They definitely have a revenue problem that your Highness Rometty needs to figure out how to strategically address. Trashing employee moral with continuous layoffs and taking away of benefits is not going to create an environment that will accomplish their needed revenue growth goal.
Are you all daft? This is all "corporate" and "market" manipulation. There are the "same" in this nonsense. Riddle me this... how is it that the "markets" .... seem to rebound where they were before...and, make the "markets" go up? It is done on "their" whim by pushing buttons. How can one possibly think that our economy is thriving to push "markets" up. This is a primary example.
Most of the managers were hangers on who could not make a good decision if it was staring them in the face, not to mention banging any women who they would promote,lol. I was there when IBM had its first layoffs ever. It got worse from there.
F**K IBM.....I would never suggest anyone work there...They have a nice habit of getting rid of people so they can hire 3rd world temps so they dont have to give them benefits.
ReddingGuy is right-on!!!
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages finished the session on a lower note as the S&P 500 lost 0.4% while the Nasdaq shed 0.1%. The Russell 2000, which paced the retreat on Tuesday and Wednesday, added 0.2%, trimming its December loss to 3.5%.
After spending the first half of the session in a steady retreat, the S&P 500 found technical support in the 1772 area. Upon reaching that level, the index reversed sharply, and marched back to its flat line. There was no particular catalyst ... More
More Market News
With the universe of this category in its seasonal sweet spot, these picks have tailwinds propelling them into the new year.