IBM to Lay Off 203 in San Jose Monday

IBM plans to lay off 203 workers in Silicon Valley on Monday, as part of its $1 billion restructuring plan that has already resulted in over 3,000 job cuts. Ironically, the move comes as Big Blue is also gearing up to initiate a one-week forced furlough to many of its U.S. workers affiliated with its hardware operations, as means to avoid layoffs.

The upcoming layoffs are specifically hitting IBM’s San Jose, Calif., facilities, according to documents IBM filed with the State of California. Although it is not clear from the filing which operations will be affected, Big Blue does operate an IBM Research office and IBM Business Continuity and Resiliency Services offices in San Jose.

An IBM spokesman in San Jose did not immediately return phone calls seeking comment.

When IBM unveiled its cost cutting restructuring plan in April, it expected most of the cuts would be largely completed by the end of June. Apparently it’s dragged on longer. In order to reach $1 billion in costs, the approximate number of layoffs would be as high as 8,000 employees, according to published reports. So the announced layoffs could be only a fraction of those to come.

Meanwhile, the forced furloughs are expected to begin either Aug. 24 or Aug. 31, with U.S. hardware workers taking a week off with one-third the pay and executives from that division going without a dime, according to a Bloomberg report.

9 Responses to “IBM to Lay Off 203 in San Jose Monday”

  1. SouthRoad

    Over the past 8 years any time a recruiter tried to recruit me to work for IBM, the request went right into the trash heap. That is a big change from the 80’s and 90’s. Back then everybody wanted to work for IBM. Today I know lots of programmers who feel the same as I do about IBM. They say: “IBM–You’ve gotta be kidding me !”.

    Long term this will hurt them. Remember when they were laying people off and telling those people they could keep their jobs if the moved to India? Do you think the community forgets things like that? Maybe newbies with fewer years in the business don’t remember that, but for the rest of us Senior people with years of experience and long memories–the IBM of today is not the place you want to “hang your hat”.

    It’s never a surprise when reading that IBM is laying people off in the USA. What is a surprise, is why anybody would work for them.

    Judging from the number of lawsuits they have had over the past few years because of projects that failed to meet client expectations, you might conclude that all their good people are already gone and they no longer have anybody left who can actually deliver on their contracts.

    It will be interesting to see how much of IBM will still be in existence 10 years from now. It’s hard to believe they once ruled the computer industry.

    • johngalt2001

      > Over the past 8 years any time a recruiter tried to recruit me to work for IBM, the request
      > went right into the trash heap ……. It’s never a surprise when reading that IBM is laying
      > people off in the USA. What is a surprise, is why anybody would work for them.

      You end up working for them because any *other* company in your region that *can* leave NYState has already done so, and the only ones left are there because they’ve gotten taxpayer-funded government bribes to stay. So that means they don’t have to actually make an effort to survive; the execs can leech the company dry then jump to a new victim. So you end up on the cycle of working at IBM, then getting let go for 6-9 months, then having to go crawling back to IBM, like having to crawl back to an abusive spouse, over and over again until they kill you.

  2. Sad and worrisome… lately there’s been a lot of layoffs going on with big companies (Symantec, Blackberry, IBM, AOL, ….). At the same time, you hear the IT market is hot, not sure what to make of it.

    • SouthRoad

      I see no difference in the job market from last year or the year before. Companies are just as picky as before and will pass up a good fit and hold out until they can find somebody cheaper. Sure doesn’t seem like a shortage to me and judging from lots of people I know who also have been looking for jobs they tell me the same thing. It is not a terrible job market, but it is definitely not like 1999 either. Nothing has changed over the past few years other than all the headlines declaring this as a “programmer shortage”. Not true.

  3. I rejected IBM

    I’m not surprised. IBM has been lobbying for more guest worker / outsourcing visas lately. Basically, they are displacing workers with low cost guest workers. IBM offered me a job 3 years ago, which I turned down as I knew they would be doing large scale worker displacent soon.

  4. My IBM Butt Hurts

    What can you expect from a company who promotes 1d1ots and developmentally disabled as managers. Ask how many layers of managers it has and how many direct reports they have for each manager. I will tell you each manager probably averages about 4-5 direct reports and once it get has six direct reports, that manager will try to make one of his direct reports to be a 1st line making him a second line manager. That is how IBM works. It takes 20 IBMers to present its solutions to customers while the competitions only have 2-3 people. It will take about another 20 IBMers to resolve field issues while the competition may only take just 1 engineer. IBM makes smart people dumb because the system is designed for dumb people to succeed.

  5. IBMer for Life

    I am still surprise how I survived IBM for more than 25 years now by doing nothing. I just listen to the conference calls, send a few emails to the managers with some questions about the conference calls, send some birthday greetings to team members, congratulate new retirees, and basically chat on SameTime about sports and who just got laid off. Amazing how unproductive my life was but IBM management gave me an average of 2+ on my PBC ratings. I feel guilty for people who were laid off considering they worked more than I did. I guess I am just lucky.

  6. STG Employee

    I am currently under furlough as required by IBM for many of its IBM STG employees. Last week, I was told by another manager that I should start looking for alternative as IBM is planning more resource actions before the end of the year. Since Monday, I have been checking the Global Opportunity Market place (IBM internal job site) and I noticed that more jobs are available outside the US. IBM is really accelerating the transfer of US jobs to third world countries. I wonder how long many US IBMers will stay employed.