IBM Begins Layoffs in the U.S.

IBM Thinkpad

IBM began a new round of domestic layoffs on Thursday, with its $1 billion “workforce rebalancing” effort expected to slash as many as 13,000 jobs worldwide.

IBM ThinkpadCuts are expected to come in New York, Minnesota, Iowa, Missouri, Oklahoma, North Carolina and Vermont. The union Alliance@IBM also reports 3,300 layoffs abroad, including in Brazil, Argentina, France, and Italy.

A source told CNET that the cuts include 25 percent of its hardware division — the Systems and Technology group.

Big Blue is sparing some positions in New York state – at least for now. The company cut a deal that would keep 3,100 workers on the job in the Hudson Valley and surrounding areas through the end of 2016. Meanwhile, the company is investing $1 billion in a new Watson unit to be based in New York City, and will spend $1.2 billion to expand its SoftLayer cloud operations. It’s also is adding 500 employees at a state-owned technology center in Buffalo.

IBM acknowledged the cuts, but did not specify the numbers:

IBM continues to rebalance its workforce to meet the changing requirements of its clients and to pioneer new, high-value segments of the IT industry. To that end, IBM is positioning itself to lead in areas such as cloud, analytics, and cognitive computing and investing in these priority areas.

It also noted that it’s continuing to hire, saying, “At any given time, IBM has more than 3,000 job openings in these and other growth areas in the U.S.”

The company is expected to hire hundreds for a new design studio in Austin, Texas. It also expanded its services business in Baton Rouge, La., where it plans extensive hiring, as well.


3 Responses to “IBM Begins Layoffs in the U.S.”

March 03, 2014 at 2:22 pm, jgalt2000 said:

> A source told CNET that the cuts include 25 percent of its hardware division —
> the Systems and Technology group.

That means by this time next year there probably won’t be a STG at all…. (figuring 25% layoff every 3-4 months).


March 04, 2014 at 11:43 am, Ken said:

Notice India is not mentioned on the list of countries facing layoffs.


March 04, 2014 at 7:28 pm, emilov said:

IBM is about to cut “13,000 jobs worldwide” and it “has more than 3,000 job openings”…
It is somehow unclear how many of those 13,000 are eligible for training to that they can fill some of the 3,000 job openings…


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