Feeds

IBM confirms 15K job losses

SEC filing

  • alert
  • submit to reddit

Build a business case: developing custom apps

IBM is cutting more than 15,600 jobs worldwide in its computer services and microelectronics divisions, due to lower demand for its products and services.

According to documents that IBM filed with the US Securities and Exchange Commission (SEC), 1,400 of the job losses will take place in the microelectronics division, but the majority of the job losses are taking place in the computer services division, where 14,213 people are losing their jobs.

According to IBM, more than half of the cut workers left the company by the end of June and all of the layoffs will take place by the end of September. The global services division of the company had about 150,000 employees before the job losses and IBM had around 320,000 employees in total at the end of 2001.

IBM had announced job losses when it announced its second quarter results in mid-July, but the numbers and details of the redundancies were not known until now.

IBM employs 4,000 people in Ireland in call centres, manufacturing and sales operations, mostly in Dublin. So far this year, IBM has announced no job losses in the Republic. And although almost 60 percent of the cuts have already been made, it is unclear whether the remainder of the cuts will hit Irish workers. IBM says all of the workers who will lose their job will be released by 30 September.

At the end of July, IBM announced plans to purchase PricewaterhouseCoopers' Consulting Division, in a deal worth around $3.5 billion. Whether that deal will result in job losses for its Irish workers remains to be seen as well, although early analysis of the merger indicated that any possible cuts here would be modest.

PwC Consulting employs 30,000 people worldwide and an estimated 250 of its workers in Ireland will be affected by IBM's purchase. The deal still must be approved by PwC's 9,000 partners worldwide, as well as by the US Securities and Exchange Commission.

IBM has been hit hard by the technology slowdown and squeezed out a profit of just USD0.03 per share for its second quarter, taking a USD2.1 billion charge.

The company's net income amounted to only USD56 million in that quarter, compared with USD2 billion, or USD1.15 a share, in the second quarter of 2001. The charges which were to blame for the 97 percent decline in profits were the USD825 million it cost for the reorganisation of its microelectronics business, USD802 million job cuts in other parts of the company, and USD428 million the business write-off for the discontinuation and sale of its hard disk-drive business to Hitachi.

© ENN.

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?