Feeds

Big-Blue Euro jobs cull coming?

Non US stimulation package

High performance access to file storage

Big Blue's UK, German and Ireland employees should prepare for layoffs with thousands of jobs reportedly going to eastern Europe, the Far East and South America.

IBM has around 41,000 employees in UK and Germany, with contractors in the UK already having received pay cuts.

Lee Conrad, from US workers' group Alliance@IBM, is reported to have said though that he expects: "Many job cuts in Ireland, Germany and the UK in the coming months." Alliance@IBM claimed job cuts had already taken place in western Europe

IBM refused to comment on the reports.

Around 10,000 employees have been laid off by IBM in the US, many in its Global Services unit, since the start of the year. A lot of these jobs have gone outside the US to geographies that are more affordable according to Conrad. Some of the laid-off workers were angry that they were losing their jobs at a time IBM chief executive Sam Palmisano was paid a mind-boggling $19.5m.

Inside IBM US, a Project Match is said to enable employees who are being laid-off the opportunity to be transferred to a lower-wage geography - such as Brazil, China, the Czech Republic, India and Nigeria - where they would be paid a local rate.

Against this backdrop, IBM in the US is apparently attempting to pursue federal stimulus money from the US government - an action that would seem incompatible with sending US jobs offshore. The $787bn package, agreed by Congress in February, had a prime intention of preserving US jobs, something Big Blue seems not to understand.

Conrad reported said: "They're moving work offshore to pay lower wages and lower taxes. IBM shouldn't have their hands on stimulus money if they're offshoring work."

The business logic behind the cuts would seem to be to reduce IBM's own costs so that it could lower its services and other prices to customers hurting from the recession. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
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.