Business

IBM does what IBM does best: Raises the chopper again

No we aren't talking about helicopters. UK heads, offshoring....

By Paul Kunert

55 SHARE

Exclusive With the wider ambition to base eight in 10 services personnel to lower-cost wage locations, IBM has commenced the latest job-cutting process in the UK and Ireland.

Big Blue wrote to staff in the Global Technology Services division yesterday to warn of a 45-day consultation, indicating that at least 100 heads are going to roll.

“It is announced today that we are forming an Employee Consultation Committee (ECC) to represent the permanent employee population of the IS Delivery business areas in the UK,” the memo stated.

Both management and the wider workforce will sit around the table, IBM added in the missive, and discuss “proposals for the organisation to meet its business objectives”.

IBMers have until this Friday, 1 December, to nominate colleagues to represent them. The consultation starts on 6 December for one-and-a-half months.

The company signed off by thanking staff for their “continued support and commitment to our business at this time. It is vital that we continue to provide a first class service to our customers”.

As The Register has previously revealed, IBM wants to employ 80 per cent of its GTS people in relatively cheaper areas, including India, by the end of 2017.

In fact, IBM previously indicated in internal documents seen by us earlier this year that 122,000 of its entire workforce is already based in India and Bangladesh. IBM employed 380,000 heads in 2016.

Multiple redundancy programmes were run by the tech giant this year already, and the timing of the latest is impeccable.

It has also moved to cut travel costs for all the grunts – but clearly CEO Ginni Rometty avoided that particular austerity measure.

IBM has reported declining sales for the past 22 quarters. ®

Sign up to our NewsletterGet IT in your inbox daily

55 Comments

More from The Register

IBM Cloud TITSUP: Techies investigate troubling storage underperformance

Updated It took 6 hours to realise certain Big Blue storage fluff had KO'd

IBM bans all removable storage, for all staff, everywhere

Risk of ‘financial and reputational damage’ is too high, says CISO

IBM wins five-year whole-of-government deal with Australia

Government trumpets savings, Big Blue trumpets quantum blockchain innovation revolution

Big(ish) Blue: IBM sales creep up four per cent, share price follows suit

Cloud and security big winners in Q2 while Cognitive sags

IBM kills Global Technology and Global Business Services: It's all ‘IBM Services’ now

Exclusive Because you need to ‘capitalize on exponential intelligence fueled by pervasive tech’ and only IBM can do that

Thrice, in a trice, IBM cloud cuts prices

Watson? Down! WebSphere? Down! VMs? Now charged by the minute!

As far as the gender pay gap in Britain goes, IBM could do much worse

Still work to do, and could take some lessons from Microsoft

Co-op says IT upgrade project going swell since axing IBM

Things on the up after lopping off banking arm, biz claims

IBM loses mainframe docs down the back of the web, customers cry 'sabotage'

Broken page links flummox big iron clients of Big Blue

IBM Cloud’s elasticity stretches and stretches (Big Blue's credibility?)

Slow virtual server provisioning incident mistakenly given Red Alert status