The Register® — Biting the hand that feeds IT

Feeds

IBM slices 300 workers from Systems group

  • alert
  • print
  • tweet

Trimming the fat

By Ashlee Vance in Chicago • Get more from this author

Posted in Business, 28th January 2004 15:12 GMT

Free whitepaper – Enabling Datacenter and Cloud Service Management for Mid-Tier Enterprises

IBM this week sent 300 workers packing, making the cuts in the Systems group that accounts for server and storage products.

Most of the staffers have been excised from IBM's San Jose, California operation. Both systems development and finance employees saw the majority of the cuts.

The layoffs are surely a shock to the Systems group after it helped IBM to a rather strong fourth quarter. Following the earnings announcement earlier this month, IBM PR staffers rushed to promote the solid contributions of both the server and storage teams to IBM's bottom line. The Systems business, however, has been hovering near break-even for a long time.

IBM has already said it plans to hire 15,000 workers over the next year in more lucrative areas such as software and services. But just as IBM brings 4,500 of these jobs to the US, it plans to send at least 3,000 jobs offshore.

They come: they go. ®

Free whitepaper – Enabling Datacenter and Cloud Service Management for Mid-Tier Enterprises