Reg comments55

IBM could have made almost all the voluntary redundancies it needed

But... we didn't mean you! Darn it. We'll have to make compulsory layoffs

IBM UK could have almost filled its quota for voluntary redundancies in the Technical Services Support division given the number of folk that had put their hands up to leave, but will make some compulsory cuts instead.

An Employee Consultation Committee was created for TSS staff last month, with 47 positions or roughly 10 per cent of personnel in the business unit put at risk of the dreaded corporate axe.

The good people of TSS were asked to volunteer to leave with a payoff, albeit a minimum statutory payoff, and according to notes from the ECC, 44 expressions of interest were lodged.

“Of those, the business has made 26 offers of voluntary redundancy. All employees who expressed an interest are being contacted whether an offer is made or not. The number achieved via the voluntary programme is not sufficient to meet the business target,” one of our IBM contacts told us.

The ECC document stated that IBM managers will be provided with “education” regarding the “ranking process”, but an updated table detailing the groups’ target numbers versus the number of voluntary acceptances will not be published.

IBM is in cost-cutting mode again; sales haven’t grown for 20 whole quarters and it is continuing to send more roles offshore to territories where it is cheaper to employ locals.

Around eight in 10 services staff will be based in these areas by the end of this year – at least that was the plan. ®

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