IBM Corp plans to lay off about 5,000 US employees in a new round of job cuts, a source said.
The move reflects IBM’s aggressiveness in shifting labor to lower-cost regions like India and keeping its profits aloft at a time when other technology companies’ earnings are tumbling.
An IBM manager knowledgeable about the plans said the cuts would come from the services division and workers were to be informed yesterday.
The person spoke on condition of anonymity on Wednesday because he was not authorized to discuss the plan publicly.
The layoffs were reported earlier by the Wall Street Journal.
The cuts will affect about 4 percent of IBM’s US-based work force, which totaled 115,000 at the end of last year.
In a sign of how quickly IBM is staffing up in emerging markets, last year IBM had nearly as many workers in Brazil, China, India and Russia — 113,000 — as it did in the US.
IBM now has about 400,000 employees worldwide.
The Journal reported last week that IBM was in talks to buy computer server company Sun Microsystems Inc and the Indian press has reported that IBM may be interested in fraud-hit software services exporter Satyam Computer Services.
India’s Economic Times said yesterday the board of Satyam had short-listed about eight bidders, including IBM and private equity firm Apax Partners, for buying the fraud-hit outsourcer. IBM has registered its interest through a law firm, it said.
Unlike many other tech companies that have recently announced layoffs, IBM has managed to become more profitable despite the recession.
IBM’s cost-cutting, global footprint and focus on services and software, which are often more lucrative than hardware, are key reasons why.
IBM’s net income was up 18 percent last year to US$12.3 billion.
In January, Armonk, New York-based IBM cut thousands of US jobs in sales, software and hardware. IBM didn’t give the precise number, saying it fell below an amount that would require disclosure.
Other tech companies are also doing big layoffs.
Hewlett-Packard Co is slashing 24,600 positions, or 8 percent of its 320,000-strong workforce, in a three-year restructuring as part of its acquisition of Electronic Data Systems Corp (EDS).
HP paid US$13.9 billion for EDS to compete against IBM for technology-services contracts.
Microsoft Corp said in January it was cutting 5,000 jobs — marking the first mass layoffs in the company’s history — after profit in the latest quarter fell 11 percent to US$4.17 billion.
HONG KONG SECURITY: The president blasted regulations requiring Taiwanese agents or political organizations to provide information on their Hong Kong-related activities President Tsai Ing-wen (蔡英文) yesterday warned of countermeasures should controversial Chinese national security legislation imposed on Hong Kong undermine or harm Taiwanese interests. Article 43 of the legislation empowers the Hong Kong Special Administrative Region to serve written notices to Taiwanese political organizations or individual agents to furnish information on their Hong Kong-related activities, including their personal particulars, finances, assets, expenditure and capital in the territory. Failure to comply or providing false or incomplete information can result in a fine of HK$100,000 (US$12,903) or imprisonment of six months or two years respectively. Tsai said that Taiwan would keep a close watch on how
PROBE LAUNCHED: An officer who served as a supervisor in the drill died in an apparent suicide after the accident, which was caused by unexpected waves Two marines who were on Friday injured in a military exercise in the waters off Kaohsiung passed away yesterday, Navy Command said. The marines — surnamed Tsai (蔡), 26, and a sergeant surnamed Chen (陳), 36 — were in a seven-member Marine Corps team that encountered rough seas during a simulated response to enemy forces landing on Taiwan. Their rubber craft overturned in waters off Taoziyuan (桃子園) beach in Zuoying District (左營), injuring four of the marines. They were rushed to hospital, where three of them — Tsai, Chen and a 34-year-old sergeant — were taken to an intensive care unit
MORAL COURAGE: The Ministry of Foreign Affairs urged the global community to face China’s intention to subdue Taiwan and reject such irrational requests The Ministry of Foreign Affairs yesterday strongly condemned the Chinese government for meddling with US officials’ interactions with Taiwan after FBI Director Christopher Wray revealed China’s efforts to discourage US officials from visiting Taiwan. The greatest long-term threat to the US’ information security and intellectual property, as well as its economic vitality, is China’s counterintelligence and economic espionage operations, Wray told a video event at the Hudson Institute in Washington. Beijing is engaged in a highly sophisticated and maligning foreign influence campaign, with methods that include bribery, blackmail and covert deals, he said. Giving an example, Wray said that when a US official
‘SIGNAL TO ALLIES’: The US Navy’s exercises are not in response to those carried out by China, the commander of the strike group led by the USS ‘Ronald Reagan’ said Two US aircraft carriers were yesterday conducting exercises in the disputed South China Sea, the US Navy said as China also carried out military drills that have been criticized by the US Department of Defense and neighboring states. China and the US have accused each other of stoking tension in the waterway at a time of strained relations over everything from COVID-19 to trade to Hong Kong. The USS Nimitz and USS Ronald Reagan were carrying out operations and exercises in the South China Sea “to support a free and open Indo-Pacific,” the navy said in a statement. It did not say exactly