Report: IBM to Lay Off Hundreds

After having reportedly scuttled thousands of jobs already this year, IBM is in the midst of another round of layoffs that is expected to affect hundreds of its employees, according to an IBM employee group.

After having reportedly scuttled thousands of jobs already this year, IBM is in the midst of another round of layoffs that is expected to affect hundreds of its employees, according to an IBM employee group.

According to Alliance@IBM, an organization working to unionize IBM's U.S. employees, Big Blue is cutting hundreds of jobs, primarily in the company's Global Business Services (GBS) unit. Lee Conrad, national coordinator of Alliance@IBM, said that at least 200 jobs will be cut as a result of this latest round of layoffs.

Moreover, on the Alliance@IBM Website, an anonymous commenter wrote: "Layoffs are happening in GBS / Industrial today, just got notified. Haven't counted yet, but by my eye looks like about 200 affected."

Alliance@IBM said IBM has laid off up to 5,000 or more employees thus far in 2009. IBM was unable to be reached for comment.

However, local newspapers in New York's Hudson Valley area, where IBM is headquartered and employs thousands of workers in various locations, reported word of possible job cuts on the horizon.

Reports of this new round of layoffs come just after IBM reported profits of $3.1 billion for its second quarter of 2009, despite a drop-off in revenues of 13.3 percent. IBM's positive financial results appear to come largely from layoffs and other cost-cutting measures, as well as a shift in the company's business to higher-value solutions for customers.