IBM Layoffs Continue
May 20 2016 - 7:21PM
Dow Jones News
By Robert McMillan
International Business Machines Corp. this week quietly laid off
employees, continuing a wave of job cuts the company announced in
April.
IBM declined to say how many jobs would be cut overall. The
total layoffs could affect more than 14,000 jobs, according to an
estimate by Stanford Bernstein analyst Toni Sacconaghi.
The job cuts come after four straight years of declining
revenues as the rise of cloud computing threatens its software and
services business. IBM has said it would restructure its workforce
to retool for cloud services and data analysis, and could hire an
equal number of new employees by the end of the year.
The company said on Friday it had more than 20,000 open
positions. Two employees reached Friday said that IBM's internal
job-search tool listed between 7,000 and 8,000 open positions.
IBM's last round of layoffs, which affected less than 5,000
employees, came in March.
"Their initiatives aren't going as fast as they'd like them to
and it's affecting their revenue more than they thought," said one
IBM employee affected by this week's layoffs who requested
anonymity because the employee is still with the company.
This week's cuts affected workers in the Research Triangle of
North Carolina; New York City; Poughkeepsie, N.Y.; and Boulder,
Colo. Some positions are being moved to places like India and Costa
Rica, according to workers affected by this week's cuts.
Earlier in the week, IBM said it would close its 70-acre Somers,
N.Y., campus and move those jobs to a facility in North Castle, New
York.
The company's total workforce was 377,757 at the end of
2015.
Write to Robert McMillan at Robert.Mcmillan@wsj.com
(END) Dow Jones Newswires
May 20, 2016 19:06 ET (23:06 GMT)
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