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IBM Layoffs To Start On Thursday

    February 26, 2014
    Tina Volpe
    Comments are off for this post.

IBM is rumored to be cutting at least 13,000 jobs in New York and Vermont, in its “workforce rebalancing” efforts.

The cuts were code named “Project Apollo,” Alliance@IBM said in an online IBM forum. IBM told Business Insider that it doesn’t recognize this union as an official representative of IBM employees.

Although IBM remains quiet about exactly how many employees it will cut in this project, CFO Martin Schroeter said that they plan to spend around $1 billion in job cuts in 2014, and that the layoffs would happen in the first quarter.

The number has been estimated by Wall Street’s analyst Toni Sacconaghi, of Bernstein Research, that the cuts will affect at least 13,000 people worldwide, taking into consideration that it costs IBM roughly $70,000 to lay off an employee, The Poughkeepsie Journal reported.

Early this month, over 1,200 workers were let go in Europe and India, and according to Alliance@IBM, which keeps a rough tally of U.S. employees, reported that so far a reduction of over 2,800 U.S. workers took place in 2013.

Now with more cuts expected, the New York governor announced this week that he has struck an agreement with IBM that promises to keep at least 3,100 employees in New York through the end of 2016, and also to ensure another 500 new jobs to Buffalo.

But IBM still has plenty of room for cuts in the state of New York, after all, its headquarters are in Armonk, and they are a major employer there. IBM employs 7,500 in Dutchess County alone, sources at the Poughkeepsie Journal said.

The latest total headcount of job cuts for IBM from 2012 is 434,246.

The company isn’t saying exactly how many cuts are expected, or why.

Image via YouTube


  • k

    This is not a good sign; large employers- HP , Banks, now IBM (although I’m sure this has happened in the past as well) are laying off in large numbers. There ARE NO LARGE employers out there to snap up the lost workers. Before the recession, I , myself, had seen 3 layoffs during my earlier years of being out in the workforce–doesn’t matter-high end low end; years with the company or new; none of this are good signs for the US or the economy. The government I hope is seeing this and paying attention to the numbers–these are jobs that pay for houses—the foreclosures will come next.

    • tobey1kenobee

      Your kidding right? Your comment isn’t anything we didn’t already know. As for the government watching…… Do you really think they care? Of course they know all of this, just like everyone else. The difference is that the public knows it has an indifferent, self serving government, except for you. Good luck believing they will fix the problem!

      • John

        You are 100% correct CJK…

        • RCB

          Im an old retired ibmer (33years) and I have read somethings about the union being in IBM!! No wonder IBM is having problems along with it’s leadership!

  • disqus_mxo3nbWqIt

    The sentence about “latest total headcount of job cuts” is awkward and could be misleading. It reads as though IBM cut 400k jobs in 2012, which would mean everyone in the company was laid off. You probably meant that the latest total headcount, after job cuts in 2012, is 434,246. Which would put the current level of job cuts in the neighborhood of 0.03%.
    Full disclosure: I am an IBM employee, but I do not speak for the company. My interest is in clear communication and context.

    • yellow_submarine

      you seem to be one of those managers who doesn’t know the difference between 3% and 0.03% … would be good to get rid of you in this round of layoff

  • wow

    Pretty Sad. The CEO claims “mobile is the future” in the last day, and is getting all developers on board with this endeavor. Bear in mind she’s years late to the prom! I used to be an IBMer and left due to the stagnant movement in SW development. This new found endeavor and the fact that they are letting thousands of talented people go, is mostly due to lack of leadership and initiative. IBMers want to innovate and have the skills more than ever to get there. Funding and lack of skilled executives are what this is about.

  • XIBMEIT

    In the 90s IBM Endicott (home of IBM) laid off 6,000 total folks, than bought by local idiots and ran it into the ground. I had 20 years at big blue and was devastated. Now I work in Maryland at NASA doing what I did in Endicott. Still no pension, but 2 1/2 times the pay and better weather. Once laid off, take a few weeks to recoup than go for a job like your life depends on it and you will succeed!