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IBM Is Not Ruling Out Job Cuts In Australia As It Kicks Off A Massive Round Of Redundancies Worldwide

IBM in Brisbane: Tupungato / Shutterstock.com

IBM is not ruling out Australian redundancies as it moves to cut some 6000-8000 jobs around the world.

The company employs some 430,000 people around the world. It started laying off employees overnight, slashing some 200 jobs from its Research Triangle Park in North Carolina.

IBM plans to spend $1 billion on severance and other costs to shrink its workforce, after missing Wall Street estimates in April.

Late last month, Fran Foo of the Australian reported that IBM Australia planned to cut 200 jobs in a redundancy program dubbed Project Mercury.

IBM has cut hundreds of Australian jobs from its workforce in recent years under successive redundancy and offshoring programs.

In February 2010, IBM workers reported that the company could cut 800 jobs from Australia in favour of “low cost centres” in India and China.

Last July, IBM reportedly issued a “notice of redeployment” to 200 staff under Project Phoenix. The company appears to have used the same name for a British program to cut property costs in 2004.

“Change is constant in the technology industry and transformation is an essential feature of our business model,” an IBM spokesperson told Business Insider Australia. “Consequently, some level of workforce remix is a constant requirement for our business.

“Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans.”

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