IBM Cuts 1,500 More U.S. Jobs As Monthly Total Nears 3,000 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

IBM Cuts 1,500 More U.S. Jobs As Monthly Total Nears 3,000

IBM attempts to shore up profits in its outsourcing business, which saw a 19% drop-off in pre-tax income in the first quarter.

After paring 1,300 domestic positions at the beginning of the month, IBM on Wednesday handed out another 1,500 pink slips, according to a group that represents IBM workers.

The numbers were confirmed by an IBM spokesman.

The layoffs are said to be concentrated in the U.S operations of IBM's Global Services unit, which accounts for about half of the company's sales.

IBM is attempting to shore up profits in its outsourcing business, which saw a 19% drop-off in pre-tax income in the first quarter.

To that end, IBM is in the midst of restructuring the way it delivers services to Global Services customers. Under the initiative, dubbed Lean, IBM is disbanding some specialized groups of service representatives in favor of more centralized pools of reps that can handle a broad range of customer-support requirements from a single location.

According to IBM and the worker group [email protected], the company axed 1,570 jobs Wednesday, bringing the total job cuts for May to nearly 3,000. The number represents more than 2% of IBM's total U.S. workforce.

It wasn't immediately known which IBM locations were affected.

Earlier this month, [email protected] asked workers at the company to stage a 15-minute job action to protest the layoffs. It's not clear how many actually participated.

An IBM spokesman said the cuts are part of ongoing workforce rebalancing efforts and that they're offset by hiring at other U.S. locations.

Editor's note: This story was updated at 5 p.m. to include a response from an IBM spokesman.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll