IBM's cost cutting measures that have includedcontroversial job cutshave enabled
the firm to post strong second quarter results.
The firm has also raised its 2009 earnings forecast by just over
5% to $9.70 a share.
IBM has tried to raise profits by automating tasks, pruning and
expanding business areas according to revenue streams and shifting
its workforce to less expensive locations.
The re-location strategy led to
massive job cuts in the US and elsewhere. It caused
considerable
public debate, spurred
by employee unions.
The strategy has also boosted IBM profits, which rose 12%
year-on-year to $3.1bn, despite a 13% decline in sales to $23.3bn
compared with the same period the year before.
Sam Palmisano, IBM chief executive said: "We are optimistic
about how IBM is positioned to make the most of current growth
opportunities as well as those that emerge as the economy
recovers".
Alliance@IBM
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