Feeds

IBM plans to axe staff in UK, Ireland despite hefty profits

Big Blue bottom line means 'workforce remix'

Build a business case: developing custom apps

Exclusive IBM is planning a round of redundancies in the UK and Ireland despite healthy growth in profits in the second quarter.

In company documents seen by The Register, employees in the UK-based Strategic Outsourcing Delivery division were told Big Blue will start an employee consultation period of 30 days on 2 August. El Reg understands workers have been told of the planned changes.

Staff aside from those in the outsourcing delivery unit may also be facing cuts, including employees from the Software Group in the UK and Ireland.

IBM is doing well considering the global economic conditions - but bosses appear to desire increased productivity and improved profit margins. In order to achieve these, IBM told its people that redundancies were likely to be a part of the consultation.

Big Blue has had a few rounds of layoffs recently, including 5,000 in 2009 across the US, and 1,200 globally in February this year.

The tech giant has continued to make good profits throughout the economic doom and gloom, but its roadmap demands that the company hits at least $20 earnings per share by 2015. IBMers have complained that the target is being achieved by killing raises or laying off staff.

A short consultation period of 30 days indicates a relatively small number of redundancies, as much as 100 heads. However, it's unclear how many departments will hold consultations and if they are all the same length of time.

During IBM's conference call for its second quarter results, chief financial officer Mark Loughridge said that the firm would be hiring 200 to 300 sales reps for its global software business every month until the end of this year, without saying where the hires would be made.

Asked for comment on the looming redundancies, Big Blue representatives told The Reg in an emailed statement:

"Change is constant in our industry and transformation is a permanent feature of our business model. Consequently, some level of workforce remix is an ongoing part of our business. Given the competitive nature of our business, we do not publicly discuss the details of our staffing plans." ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.