IBM To Axe Up to 13,000 Employees
IBM is cutting about 10,000 to 13,000 jobs or 4% of its workforce, mostly in Europe as part of its new restructuring plan.
Apparently Germany, the UK, Italy, and France will see the majority of these job cuts.
The company hopes that this plan will save it 300 to 500 million dollars in the second half of this year and a billion dollars next year.
As David Utter of WebProNews says,
The cost-cutting move by the Armonk-based tech company was widely expected by analysts. IBM had been reducing jobs in Europe during the first quarter already.
A pretax charge to be taken in the second quarter of the year will be between $1.3 billion and $1.7 billion USD.
“We are taking action on two fronts,” said the company’s chief financial officer, Mark Loughridge. “These actions will strengthen our business, improve productivity and responsiveness and facilitate growth.”
The company said that it has already started discussions for voluntary and involuntary reductions to its workforce.
IBM has to finish negotiating with labor unions before it will disclose any details about what positions will be involved in the restructuring.
The company expects to meet its goals for 2005 based on cost cutting.