IBM slashes 1300 of its head count, more cuts to follow
IBM is said to have let go of at least 1,300 of its U.S. workforce in its latest round of job cuts, according to employee group Alliance@IBM. Following weak first quarter results; the organization is currently undertaking a global restricting plan with more job-cuts set to follow in the coming months.
The job-cuts seem to be targeted at individuals across all divisions, with at least 222 individuals in marketing having been let go along with 165 from the semi-conductor division. Lee Conrad, a coordinator for Alliance@IBM, said that “just about every division at every location is being impacted.” The cuts seem to have a few divisions harder, with an ex-employee quoting, “Z Virtualization took a big hit. We (including me) lost 48 of 300 positions.”
IBM is looking to cut around 6,000 to 8,000 jobs globally this year in a bid to save $1 billion dollars. Following the job-cuts announcement, IBM shares fell 1.4 percent to $201.20 yesterday in New York. This year has been hard on IBM, which saw the Armonk-based organization’s shares tumble following its lower-than-projected first quarter earnings, in which it earned only $3.00 per share versus the anticipated $3.05, which led to its first earnings shortfall since 2005.
In an official statement, IBM said: “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.”