Monday, January 26, 2015

IBM Denies 100,000 Job Cuts but Doesn't Deny Cuts are Coming

Let's update the morning's earlier post on IBM and its pending, albeit unannounced, job cuts.

IBM Dismisses Report of Massive Layoffs has this correction to the rumors making the rounds today:

"International Business Machines Corp. dismissed a report stating that massive new layoffs were coming this week for the computing giant.

A report in Forbes on Thursday said the company was preparing to cut its workforce by 26%, which would amount to the largest workforce reductions in IBM’s history and affect more than 100,000 employees.

In an emailed statement, an IBM spokesman reiterated management’s comments following its fourth-quarter financial results that a much smaller number of IBM employees are leaving the company as part of “rebalancing” actions, which are designed to create job openings to be able to hire people with new skills.

“IBM does not comment on rumors, even ridiculous or baseless ones,” the spokesman said. “If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has already announced the company has just taken a $600 million charge for workforce rebalancing. This equates to several thousand people, a small fraction of what’s been reported.”

The spokesman added that the company currently has job openings as part of the rebalancing process."

Summing Up

The cuts are coming.

Thousands of them.

Just not 100,000 of them.

Stay tuned.

Thanks. Bob.

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