IBM job cut announcement imminent

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IBM job cut announcement imminent

Warwick Ashford

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.

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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 would lay off 1,500 employees as part of a cost savings plan after releasing poor third quarter results.


Job losses mount:


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