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 Latest News
    • PC Hardware

    IBM Begins Round of Layoffs

    By
    eWEEK EDITORS
    -
    May 23, 2002
    Share
    Facebook
    Twitter
    Linkedin

      IBM has initiated what is expected to be its biggest round of layoffs since the early 90s, with sources inside the company saying the computer maker plans to let go of about 8,000 employees out of 320,000 worldwide.

      While sources have previously told eWEEK that IBMs semiconductor manufacturing facilities are expected to take the hardest hit, a spokesman for IBMs Microelectronics division said the unit has not announced any layoffs.

      “Microelectronics has not announced any reductions today,” said spokesman William OLeary. “There have been reductions announced in other parts of the business, but none of them are microelectronics related,” he said, although he acknowledge cutbacks may occur in the future.

      OLeary also dismissed earlier reports that IBM was considering selling its Burlington, Vt., facility, which employs about 8,000 workers.

      A senior IBM vice president, he said, “told employees today at the Burlington site that it is not for sale.”

      So far, layoff notices have been confirmed at IBMs facilities in Endicott, East Fishkill and Somers, N.Y., Essex Junction, Vt., and Research Triangle Park, N.C., where IBM employs about 14,000 workers.

      A corporate spokeswoman for IBM, based on Armonk, N.Y., would only say that the computer maker took “some actions today,” but would not provide further information on the layoffs.

      “We continuously evaluate our business and we are achieving greater efficiencies by eliminating redundancies and consolidating work,” she said.

      In a meeting with market analysts earlier this month, chief executive Sam Palmisano confirmed the company was looking to reduce its head count after its first quarter profits fell 32 percent from a year ago and sales declined 12 percent.

      IBM has blamed the downturn on a weak global economy and industry-wide decline in IT spending.

      Analysts have speculated IBM will seek to cut its worldwide employment by 20,000 jobs, with most of those cuts occurring through normal attrition. However, if company sales should continue to decline, sources said, more layoffs would likely be initiated next quarter.

      Palmisanos decision to trim IBMs ranks comes only two months after he succeeded Chairman Lou Gerstner as CEO. The new cutbacks are expected to pale in comparison to those initiated by Gerstner when he took over the then-troubled computer maker in 1993. After only three months as CEO, Gerstner ordered more than 60,000 layoffs, at that time the largest ever for a U.S. corporation.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      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
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      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
      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
      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.

      ×