Feeds

IBM cuts internet comp for work-at-homers

Big Blue 'denies' internal memo

Boost IT visibility and business value

IBM's newest cost-cutting scheme is eliminating its program that lets employees working from home claim internet access as a business expense, according to InformationWeek.

An internal memo reportedly sent to IBM employees and obtained by the publication states employees worldwide can no longer obtain reimbursement for internet service beginning May 1.

When asked for comment, IBM spokesman Fred McNeese told El Reg the company has made no announcement to employees, along with the standard "we don't comment on rumors or speculation" line.

According to InformationWeek's memo, the program was originally set up in the 1990s, when home internet access wasn't considered a basic utility.

"Today Internet access has become pervasive around the world and in-home Internet contracts have become commonplace along with cable and other telephony services," IBM allegedly wrote in the employee memo.

McNeese told us that about 40 per cent of IBM's employees worldwide work from non-IBM locations, including client locations, homes, and alternative work sites. The company wouldn't break the figure down further. According to IBM's annual report, it had 398,000 workers worldwide at the end of 2008.

IBM confirmed it cut about 5,000 jobs in the US last week — mostly from its services division — in its continued efforts to shave expenses. IBM exec speak for the layoffs is "resource actions" internally. Although the division has been a steady source of profits for Big Blue, the company appears to be shifting the work to lower cost countries like India.

Earlier this month, IBM imposed a 10 per cent cut in contractor day rates.

IBM's cuts have become particular contentious amongst employees now that the company is in talks for a $8bn takeover bid for Sun Microsystems. ®

Build a business case: developing custom apps

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
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
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.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.