Feeds

IBM job cuts: Big Blue starts 'slaughter' of Indian and European workforce

Redundo reaper makes appearance after Lenovo sell-off

Internet Security Threat Report 2014

IBM has begun slicing away at its workforce in India and Europe, as the company tries to shift its business to more lucrative, higher-margin technologies.

The job cuts were confirmed by a representative for the IBM Union Alliance to The Register by email on Wednesday after a report was published describing a mass layoff in India that seemed more like a "slaughter house".

"We have been getting reports from IBM India employees for the past 2 days," Lee Conrad, the international coordinator for the IBM Global Union Alliance, told us. "They say the cuts are very large, although we do not have any numbers yet."

In addition to the large-scale Indian job cuts, Conrad told us that job cuts were ongoing in Europe, with countries hit so far including Norway (35 jobs), France (between 438 and 500), Belgium (105), Italy (430), and the Netherlands (240).

"We expect more in other countries. The number could reach 15,000 world wide," he said.

Reports and rumors point to the Indian cuts slicing into IBM's Systems and Technology Group – which seems likely, given IBM's recent sale of one of the group's main technical assets, the System X server unit, to Chinese manufacturing giant Lenovo.

"STG INDIA operation has started and people with 12+ years with POWER Firmware not spared ... Operation still in progress and numbers are huge," wrote one anonymous whistleblower.

At the time of writing IBM had not responded to requests for information by El Reg.

These layoffs and voluntary redundancy schemes are part of a larger shift by IBM away from low-margin commodity equipment and into lucrative software. This is motivated by sagging earnings in hardware and a commitment to attaining earnings of $20 per share to satisfy Wall Street shareholders.

"We'll acquire key capabilities, we’ll divest businesses, and we'll rebalance our workforce, as we continue to return value to shareholders," IBM's chief financial officer said recently.

In related news, IBM was recently rumored to have retained Goldman Sachs to help it price up its chip division for a possible sale.

If true, by the end of this year IBM's grim redundancy reaper will likely need a lie down to recover from its bleak "returning value to shareholders" scything. ®

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.