Reports: Layoffs Coming In IBM Services
From ChannelWeb: Reports: Layoffs Coming In IBM Services
Great... here we go again...
IBM is set to cut as many as 5,000 jobs from its global business and global technology services, according to published report by Reuters and The Wall Street Journal.
The move comes after IBM eliminated an undisclosed number of jobs— believed to number at least several thousand—back in January. Those cuts were primarily in the company's Software Group.
While a spokesman acknowledged in January that IBM was "reallocating our skills and resources," the company has largely been silent about the scope of its workforce reductions. An IBM spokesman declined to comment Wednesday on reports of the latest layoffs.
The reports indicate that some of the service work performed by the laid-off employees would be shifted to IBM employees in India.
But not to worry... I'm sure those 5000 will be thrilled to jump at the opportunity to travel abroad and keep working for Big Blue.
I think we can pretty much conclude that IBM is no different than any other manufacturing company, and has decided that the US is too expensive in terms of resources. Hence, just ship all the jobs overseas so the cost of doing business in the US is cheaper. I can somewhat see the day when the US IT industry is no different than the US automakers... Unless it involves selling or repairing software, it's just too expensive to do it in the US.
And it still dismays me that IBM chooses to keep the cuts below a level in which they are required to announce what's going on. At least Microsoft had the cojones to say "yes, we're cutting people, here's how many, and here's when it will be." I have my problems with *that* also, given the state of the economy and the amount of cash flow they have coming in. Still, it's much more up front than the continual "no comment" and PR spin of one-way offshore relocation assistance.