IBM to cut 6,000 jobs


IBM to cut 6,000 jobs

IBM has announced it is preparing to lay off between 2% and 3% of its global workforce in a cost-cutting move after poor financial results for the first quarter.

It is expected between 6,400 and 9,600 workers will lose their jobs, according to sources.

No further details on the cuts or when they will begin were available.

Last month, IBM announced its financial results for the first quarter of 2002, reporting net income of $1.19bn (£0.81bn), a 32% decrease from $1.75bn last year. IBM's first-quarter revenue totalled $18.6bn (£12.7bn), a decrease of 12% compared with the first quarter of 2001.

At the time, Samuel Palmisano, IBM's president and chief executive officer, called the results "disappointing" but said they were largely the result of the global business environment, which has still not pulled out of its downturn.

Layoffs have been a continuing issue for companies across the IT industry in recent months as they struggle to cut costs and stay afloat until customers begin reinvesting in their IT infrastructures.

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