IBM Cuts Another 1,000 Jobs, Enjoys a 7% Increase in Profits
Over 1,000 U.S. IBM employees were “let go” during the past week.
This comes as no surprise. IBM has been decreasing American jobs for half a decade.
IBM has reduced its American workforce by over 21,000 employees since 2007. It is not possible at this time to pinpoint exactly how many IBM employees have been let go over the past two years because “IBM stopped disclosing its specific U.S. head count in 2010, following the practice of many other large technology companies”
The decision to cut these positions comes at a time when profits are up by 7% with revenue of 106.9 billion and IBM feels no need to discuss details of their staffing plans, at least not in public. A spokesmen for IBM claims shifts in demands as the reason for the corporation is “[…] constantly rebalancing its workforce.” IBM went on to say that “that means reducing in some areas and hiring in others — based on shifts in technology and client demand. This flexibility allows IBM to remain competitive and relevant in an industry that is constantly changing.”
Do you think that these tech based companies genuinely rebalance their workforce, or do they trend towards radical overhauls? Should America be more conservative in their hiring and firing practices and prepare employees to thrive in new industries? If so, would this result in a more stable U.S. economy?