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Report: IBM to Layoff Off at Least 6,000 Companywide

Press release from the issuing company

Thursday, June 13th, 2013

International Business Machines Corp. (IBM), the world’s largest computer-services provider, began cutting U.S. jobs today as part of a global restructuring plan announced in April, a person familiar with the move said.

The reduction targets employees with a range of seniority, from rank-and-file staff to executives, said the person, who asked not to be named because the information is private. Some U.S. workers began to receive notifications of the cuts last night, according to Lee Conrad, a coordinator for Alliance@IBM, an employee group. The restructuring will cost $1 billion worldwide, including severance expenses.

IBM announced the job-cutting effort after releasing disappointing first-quarter results in April. The Armonk, New York-based company posted profit of $3 a share in the period, missing the $3.05 predicted by analysts -- the first earnings shortfall since 2005, according to data compiled by Bloomberg. IBM said at the time that the job reduction would be concentrated overseas and mostly complete by the end of June.

The company is probably cutting 6,000 to 8,000 jobs globally, based on the $1 billion cost figure, said Laurence Balter, an analyst at Oracle Investment Research in Fox Island,Washington. That would represent less than 2 percent of IBM’s total workforce of 434,246 as of Dec. 31.

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