IBM Layoffs To Start On Thursday


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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.

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