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IBM is to cut more than 1 in 8 from its UK Labs, say sources

See that chopping block? Head down there, please

IBM is taking the knife to the UK Labs team with more than one in eight staffers expected to get the chop, insiders have told us.

The “Resource Actions” are expected to see 123 out of 900 divisional employees get made redundant following the start of a 45-day redundancy notice period. An Employee Consultation Committee has been established.

“[There are] no voluntary redundancies and no package beyond the statutory minimum,” said one IBMer. “Last year they were voluntary first, and only involuntary if [the company] didn’t make the number.”

The Labs are dotted across the UK – including Farnborough, Staines, London, Manchester and of course Hursley Park in Winchester, which includes Labs for the cloud, retail, public sector and energy & utilities sectors.

Sources said UK Labs is largely comprised of businesses in what was known as Application Integration Middleware. Products developed include MQ Series, IBM Integration Broker, i2, and ODM Advanced to name but a few.

Changes at Labs are not isolated - Big Blue is also making significant changes in Global Technology Services, putting 1,352 staff at risk of redundancy with a view to reducing headcount by 185 jobs.

The company is responding to tough market conditions, and the move comes after 15 consecutive quarters of declining revenues.

A spokeswoman at IBM confirmed it had begun a consultation process with groups of employee reps.

“IBM continually remixes skills – our clients expect no less as they look to IBM to help them take advantage of innovations and new technologies. Globally IBM continues to invest in skills needed for the future,” she told The Reg. ®

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