IBM has told its Australian subsidiary to cut 10% of its Australian workforce as part of a global cost-cutting drive, the SMH reports.
IBM in April said it would spend $1 billion on severance and other costs to shrink its workforce, after missing Wall Street estimates.
Ben Grubb of the SMH reports that Australian executives were told of the redundancies in a March teleconference. The company is estimated to employ between 12,000 and 14,000 staff in Australia.
Despite the scale of the job cuts, IBM has kept details close to its chest. IBM insiders told us last week there was no companywide communications in Australia after it became clear that the company was embarking on its big round of cost reductions — they were relying on the media reports like everyone else. Only affected staff were being told.
The SMH reports that hundreds of people have been let go from IBM Australia so far, with more redundancies likely to occur throughout 2013.
There more at SMH.
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