IBM is expected to announce thousands of US job cuts,
either along with fourth quarter results due out later today or
within the next few days.
IBM's fourth quarter results are expected to reflect how badly
the company has been hit by the
uncertainty about technology spending in the global economic
downturn.
The company's
share price has
demonstrated this uncertainty, dropping from $110 at the start of
the fourth quarter to finish at $84.92 at the close of trade
yesterday.
About
16,000 employees will be affected, according to a posting by a
union member on the
Alliance@IBM website
several months ago.
The posting, which put the lay-off date as 23 January, said most
job cuts would take place in the US and upper management had signed
confidentiality agreements to keep the cuts quiet.
Alliance@IBM said in a statement that IBM employees across the
US are anxiously waiting for the company to make a public
announcement about the job cuts.
The union has called on IBM to halt offshoring plans and suspend
its stock buyback programme instead of cutting US jobs.
"To offshore US jobs in the middle of an economic crisis and
rising unemployment is unacceptable," said Tom Midgley, Alliance
president.
He said the union would push for the full disclosure of IBM's
offshoring and outsourcing of US jobs.
In October 2008,
Yahoo!
confirmed it
w
ould
lay off 1,500 employees as part of a cost savings plan after
releasing poor third quarter results.
Job losses mount: