Thursday, January 8, 2009

IBM may be laying off 16,000 workers

The IT Examiner source is quoted as saying, "We came to know about the 16,000 job cuts. The reports are true though nothing has been made official yet from the management’s side. The hardware segment will have the most number of job cuts globally. It will definitely have huge impact on IBM jobs mainly in parts like China, Europe and US. No such sign of massive lay-offs in India yet but fractional impact is unavoidable when such a huge numbers reduced globally."

A unconfirmed source told TG Daily in December that upcoming layoffs were known internally as far back as shortly after the October 16, 2008 conference call where IBM's Q3 earnings were reported.

Mark Loughridge, IBM's CFO and Senior VP, was quoted as saying "This is a tough environment, but we were ready for it," and "These ongoing actions to address spending shore up the base in tough times."

He was also quoted as saying "And while the current environment is challenging, we have the right operational plan to drive double-digit revenue growth in emerging markets, substantial productivity in major markets, and continue to extract cost and expense from our spending base and drive ongoing improvements to meet our full year objectives."

IBM had announced their Q3 earnings were up 5% at $25.3 billion, 22% increase in profits on the year.

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