Feeds

IBM's $1bn layoffs latest: Now axe swings in US, Canada - reports

Union claims 121 storage bods canned after dismal sales

Next gen security for virtualised datacentres

Scores of workers have been made redundant at IBM's Systems and Technology Group in the US, according to a union, soon after the tech titan warned of sweeping job cuts worldwide.

Following a $400m shortfall in mainframe and software sales in the first quarter of 2013, employees were warned that a "workforce rebalancing" act (a Big Blue euphemism for layoffs) will take place in the second quarter. A billion dollars has been set aside for redundancy payouts and related charges, although most of that is expected to be doled out to staff working outside America. El Reg reported two weeks ago that IBM started a 45-day consultation process to let 270 people go at its UK and Ireland operations.

Today, Big Blue employee union Alliance@IBM claimed that 121 peeps on the storage systems development team in the IBM Systems and Technology Group have been axed.

Telly station WRAL - which covers the patch of North Carolina where IBM has development facilities for servers, storage and other stuff - reported that a number of Big Blue workers have been made redundant this week in the US and also Canada. The CBS affiliate added that bods at the Research Triangle Park in North Carolina, where Big Blue storage engineers are based, are among the first to be cut - and that "hundreds" of employees will eventually be shown the door.

An IBM spokesperson told El Reg that the company does not comment on staffing plans or rumours about redundancies.

Bloomberg, meanwhile, appears to have an inside source aware of the layoffs, who said that the cuts affect everyone from factory workers and developers to executives.

It is feared IBM will shed something along the lines of 6,000 to 8,000 workers, judging by the size of the $1bn payout pot. All that the company's chief financial officer Mark Loughridge would say is that the bulk of that ring-fenced cash would be allocated in the second quarter, which ends this month - so there is not a lot of time left to complete this "workforce rebalancing" act. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.