IBM cuts jobs in West but recruits in East

IBM is planning to hire an extra 14,000 workers in India this year, as it lays off up to 13,000 staff in western Europe and the US to cut costs.

IBM is planning to hire an extra 14,000 workers in India this year, as it lays off up to 13,000 staff in western Europe and the US to cut costs.

An internal IBM document, which outlines the Indian expansion, has been leaked to the New York Times by the Washington Alliance of Technology Workers (WashTech).

WashTech is concerned about the increasing numbers of IT workers losing their jobs as a result of offshoring. It is believed that a disgruntled IBM employee leaked the document to WashTech.

IBM has confirmed the document is genuine but will not confirm the number of extra Indian workers it will employ this year.

The document is labelled “IBM Confidential” and dated April 2005. IBM announced its redundancy plans at the beginning of the year after posting poor quarterly results.

IBM is cutting disparate regional operations and replacing them with what it believes are less clunky operations that can react more quickly to rapidly changing overall industry market trends. The new centres will specialise in different parts of specific global markets.

Tata Consultancy Services, a leading Indian outsourcer, said this week it planned to hire an extra 13,500 workers this year to cope with increased demand.

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