All last week, IBM (IBM) refused to comment on reports of job cuts all over the Internet, and when SAI contacted the company about layoff reports IBM spokespeople told this reporter they wouldn’t comment on “speculation.”
Then over the weekend someone at IBM Canada confirmed the obvious: Yes, of course layoffs are underway. Now we get more details from this morning’s WSJ. IBM still isn’t saying how deep the cuts are, but the Journal has confirmed 2,850 after getting their hands on leaked IBM documents.
Still far less than the 16,000 number floated on the [email protected] union website.
International Business Machines Corp. sent layoff notices to more than 2,800 people in its sales and software groups in the U.S. last week, indicating that domestic job cuts at the technology giant may be more significant than it has signaled….
In an “Employee Information Package” sent to affected workers in the two groups last week, IBM listed workers “selected to participate” in its “current resource reduction action” by age and job title, but without names. The total listed positions came to about 2,850. Copies of the documents were reviewed by The Wall Street Journal.
It couldn’t easily be determined what percentage of workers in the two groups was affected. But one large category — software engineers — suffered layoffs of 839 out of 9,784, or about 8.6%, according to a tally by one person who received a notice…
In the sales and distribution group, layoffs included 20 marketing managers and nine vice presidents. More than 150 vice presidents remain in the group
Why the secrecy? One bitter IBM employee tells SAI:
The next bag of tricks up IBM’s sleeve is to make offers to some current employees to move to newly-formed Global Delivery centres (Boulder, Colorado, Fishkill, NY and soon to be Dubuque, IA in the US). This is in stark contrast to IBM’s liberal work from home policy. The rub is, IBM is not offering any kind of relocation package. If you want to move, it’s on your dime, but no guarantees of a job in writing, but yet they are asking you to stay for a minimum of one year. And if you don’t want to move, you train your replacement, but they are considering it a voluntary quit, so no severance to be paid. People have kids in school, houses that they can’t sell, spouses that are employed and can’t relocate, etc, etc and IBM is using this as an excuse to strongarm folks into “quitting” so they don’t have to pay them any severance.
We’re still trying to figure out if the total personnel reductions are the 2800 the WSJ has already confirmed, or something deeper. Know more? Email IBM tips to [email protected]
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.