IBM starts cutting jobs around the globe, includes China.
Staff Reporter | | Jun 15, 2013 07:21 PM EDT |
IBM (International Business Machines Corporation), the world's largest computer-services provider, has fired at least 1,300 workers in a round of U.S. job cuts that began on June 13th 2013, according to the employee group Alliance at IBM.
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IBM reported the reason for cutting job is for the company's reconstructing.
And the reason why IBM decided to restructuring was because of the first-quarter results early in this year was disappointing.
According to Lee Conrad, a coordinator for Alliance at IBM, she said "the job reduction includes at least 222 people in marketing for the software business and 165 in semiconductor research and development."
The cuts target employees with a range of seniority, from executives to rank-and-file workers, said a person familiar with the effort, who required not to be identified, as the information is private. The restructuring will cost $1 billion worldwide, including severance expenses. "Just about every division at every location is being impacted, IBM said at the time that the job reduction would be concentrated overseas and mostly complete by the end of June. So far, IBM has eliminated about 128 jobs in Denmark, 250 in Italy and 700 in Germany, among other countries," Conrad Lee said.
"Change is constant in the technology industry and transformation is an essential feature of our business model," IBM said in a statement, but do not give specifics on the job cuts. "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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