Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Blogs First Read
    • Blogs
    • First Read
    • IT Management
    • Servers

    Lenovo: No Pay Cuts After IBM Server Deal Closes

    By
    Jeff Burt
    -
    March 11, 2014
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Lenovo officials are saying the workers strike at an IBM factory in China to protest Big Blue’s planned sale of its x86 server business to Lenovo is an internal matter for IBM.

      However, they said in a statement released March 10 that Lenovo is not planning any cuts to pay or benefits for the 7,500 or so IBM employees who make the transition to Lenovo once the $2.3 billion acquisition closes later this year. The deal is still making its way through the regulatory approval process.

      Hundreds of workers at an IBM plant in Shenzhen in southern China went on strike March 3 over fears that Lenovo will slash wages and benefits to help cut costs. They reportedly also are concerned that, for those who don’t move over to Lenovo, the severance package being offered by IBM is too small.

      While saying that the “strike at the IBM server factory in Shenzhen is an internal matter for IBM,” Lenovo officials are trying to assuage fears that a transfer to Lenovo will mean pay cuts.

      “The talent we are acquiring is a great asset, and key to our long-term success,” they said in their statement. “Lenovo will rely on these employees to build the business after closing and looks forward to welcoming them to Lenovo in several months’ time. To ensure a smooth transition Lenovo is committed to provide opportunity for all employees from IBM’s x86 server department who transfer to Lenovo, without any reduction of their wages and benefits.”

      The two companies announced the deal in January. The acquisition of IBM’s low-end server business will vault Lenovo into the number-three spot in the global server space, behind Hewlett-Packard and Dell. Lenovo officials hope to mirror the success the company saw from its $1.25 billion acquisition of IBM’s PC business in 2005. Lenovo is now the world’s largest PC vendor.

      The 7,500 IBM workers who will come to Lenovo are in more than 60 countries and are in such areas as product development, manufacturing, sales and marketing, Lenovo officials said.

      “Part of the reason Lenovo is acquiring IBM’s x86 server business is to gain the tremendous talent and experience of its workforce, strong from top to bottom,” they said in the statement. “Lenovo is buying IBM’s x86 [server] business intact and Lenovo is similarly committed to following the IBM x86 server product roadmap.”

      According to a report in the Shanghai Daily newspaper, as the strike entered its eighth day, IBM had fired 20 protestors for “disobeying company orders, absence without leave and gathering together during work times.” The newspaper reported that IBM has refused to negotiate with the strikers.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Artificial Intelligence

      10 Best AI 3D Generators 2023

      Aminu Abdullahi - November 17, 2023 0
      AI 3D Generators are powerful tools for creating 3D models and animations. Discover the 10 best AI 3D Generators for 2023 and explore their features.
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×