IBM Lays Off More Than 1,600 People, Employee Group Says

IBM layoffsBy Jennifer Booton

IBM has initiated layoffs that have so far reached more than 1,600 positions, according to employee group Alliance@IBM. IBM confirmed the layoffs on Thursday but would not provide "details of staffing plans," citing the competitive nature of its industry. It said "some level of workforce remix is a constant requirement" in its business and remains an "essential feature" of its business model.

Dozens of anonymous posts on Alliance@IBM claim that layoffs across a wide variety of regions and departments began this week, including at least 222 people in marketing for the software business and 165 in semiconductor research and development. More than 100 positions have also reportedly been axed in each of these departments: STG Storage Systems Development, GBS AMS IBM Global Account, the Software Group Information Management and the Software group Industry Solutions.

More: IBM's 'Transformation': More Layoffs Despite Earning Surge

In total, 1,634 cuts have been reported, according to a posting on Alliance@IBM, which is affiliated with the Communications Workers of America union. The group says it will update the list Thursday night.

"I work in STG in 3D Edram Development and was informed of permanent layoff today," one person wrote on Alliance@IBM's site Wednesday.

"Atlanta POS Group hit hard. Storage and other groups hit too. Typical package," another person said.

"I am one of 83 Marketing & Communications employees being permanently laid off today. Separation date is 7/12. I work from home," another said.

Employees had been waiting for layoffs to begin ever since the Armonk, N.Y.-based computer company said that it would increase the pace of job cuts this quarter following a dismal quarterly earnings report in April where sales fell sharply below expectations.

More: More Men Than Women Fear Being Laid Off, As Economy Weakens

IBM at the time did not say how many people would be let go, but IBM Chief Financial Officer Mark Loughridge said the tech giant expected to report close to $1 billion of accounting charges this year as it axed its workforce, with more reductions aimed at departments outside the U.S. Despite the recent cuts, IBM said it remains the largest technology employer in the world with roughly 434,000 people, according to recent Thomson Reuters data.

Shares of IBM ticked about $1.17 higher to $202.37 Thursday in recent trade. They are up about 5.6% on the year. Alliance's server was experiencing slowness on Wednesday due to the influx of postings from IBM employees.

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Anon Ymouse

I was training an IBM contingency from China last year for jobs that were here in the US, Training them to take my job... It was only a matter of time !!!
IBM keeps asking employees to keep information confidential yet they are outsourcing jobs along with the design, specs and intel to China on a daily basis for IBM products. It's only a matter of time before those same products are pirated by the Chinese without the IBM logo on it.
Just two weeks ago a news item had companies complaining about their products being pirated by China and here we have a company that is giving the info to China along with the jobs.
Our White House Wonder is hyping immigration reform, yet he doesn't have a sustainable jobs plan for the Americans that are already out of work.
Spending government money to create jobs is NOT sustainable! Yet he wants to open up the border gates to these immigrants AND give them housing, food and healthcare for FREE! NO JOB needed !

June 17 2013 at 2:58 PM Report abuse rate up rate down Reply
vftoledo

"Employees had been waiting for layoffs to begin ever since the Armonk, N.Y.-based computer company said that it would increase the pace of job cuts this quarter following a dismal quarterly earnings report in April where sales fell sharply below expectations."

This has nothing to do with lack of positions available or Obamacare, this is just another company answering to their shareholders. The CEO has to make that commission and Wall Street needs more good financial news. So, instead of building better products or finding new customers, we cut from our workforce to show a profit this quarter. This pyramid scheme will not last forever, but since the CEOs play duck, duck, goose every two years and then leave; it's difficult to keep track of who does what. It will be interesting to see how this deck of cards falls and which CEO will have to answer to their "investors" while we blame it on politics or waste our time fighting with each other.

June 17 2013 at 9:37 AM Report abuse +1 rate up rate down Reply
No Thanks

In 1988, when IBM found they were over staffed, they offered an early retirement incentive for us that were eligable. I took it and never looked back. I have fond memories of my 27 years with IBM. They will survive.

June 17 2013 at 2:49 AM Report abuse -1 rate up rate down Reply
lllcln

more people laid off that will not be buying ,paying taxes maybe these republicians will be able to explain how outscoursing jobs will help.and then maybe walmart will expect more customers without money to buy their cheap chinese products and their global economy.

June 17 2013 at 2:26 AM Report abuse rate up rate down Reply
frank1946

NSA, IRS are clients.

Just Joking ?

June 17 2013 at 12:49 AM Report abuse rate up rate down Reply
ungertorelli9

IBM is still the biggest company in the world, and I think will never go out of business!My husband worked for IBM for over 30 years, and we are an average IBM family now! The IBM'rs we know are th best! I hope the employees, will be able to stay with IBM, ok?
I am so happy my husband is with IBM, because, it is such a good company!

June 16 2013 at 9:14 PM Report abuse -1 rate up rate down Reply
bng1959

IBM got out of the PC and laptop biz. It is now the only mainframe in town. So they take care of huge companies not much use for the avg Joe. Trust me they are still a live and well.

June 16 2013 at 2:59 PM Report abuse rate up rate down Reply
powerdog

you political hacks are simply dumbasses that have no idea what you are talking about. It\'s got nothing to do with whose in the White House. IBM and other large companies have been doing this for years.

June 16 2013 at 2:22 PM Report abuse -1 rate up rate down Reply
cary

Obviously we shouldn't get rid of these big companies. I'm sure IBM is doing fine without having to layoff these people. They are doing it at the expense of the lower or mid-level worker.

Years ago people worked thirty, forty years for the same company. Loyalty doesn't count for **** anymore.

June 16 2013 at 1:47 PM Report abuse +1 rate up rate down Reply
ncrespi

Wait....let me guess....the majority of these employees were close to retirement & IBM doesn't want to pay pension. Anyone can assert that it's "discrimination" but I just wonder what percentage were senior employees laid off.

June 16 2013 at 1:30 PM Report abuse +1 rate up rate down Reply
2 replies to ncrespi's comment
bng1959

They took the pensions away years ago.

June 16 2013 at 2:54 PM Report abuse rate up rate down Reply
raggtopp

If you do not comprehend of what you speak, maybe you should shut up. Have you ever heard of "being vested"

June 17 2013 at 7:41 AM Report abuse rate up rate down Reply

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