Feeds

Pink slips at Big Blue

Five per cent job cuts in US

High performance access to file storage

IBM is cutting 5,000 jobs today, mostly in the US and mostly from its services division.

Big Blue's services division has been a steady source of profits for the firm. It seems that IBM will not be reducing capacity in its services business, but will shift the work to lower cost countries like India instead.

The cuts are likely to be controversial because IBM is still making cash despite the downturn - sales in the fourth quarter were down slightly at $27bn, but profits were up 12 per cent to $4.4bn. Global business services brought in $4.7bn. Further controversy may stem from the fact that IBM is currently in the midst of a $8bn takeover bid for Sun Microsystems.

Cuts are reportedly going to be more savage at higher management levels.

Official terminology for such cuts is "resource actions", but today has already been dubbed Black Thursday internally.

A spokesman for IBM said:

On March 26, we notified some employees to inform them that some jobs were being eliminated. This is a North American action. We are not communicating locations or the number of jobs as a result of this action. IBM continuously evaluates its mix of skills and resources throughout the year, and makes changes as needed. Managing resources in this way keeps us competitive, while adapting to the evolving needs of our clients. We anticipate that some employees will find other positions within IBM, and we’re helping them in that effort. Those employees who leave IBM will receive separation benefits.

The firm's union - Alliance@IBM - is reporting 1,674 cuts in Application Services.

IBM employs 386,558 around the world and about 115,000 in the US.

Ealier this month IBM imposed a ten per cent cut in contractor day rates. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.