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Archive for Wednesday, August 14, 2002

IBM confirms plans to cut 15,000 jobs

August 14, 2002

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— After months of surreptitious layoff notices, technology giant IBM Corp. revealed it was in the process of cutting more than 15,600 jobs, or 5 percent of its work force.

The total layoff figures, which IBM never announced publicly, appeared in a Tuesday filing with the federal Securities and Exchange Commission. Employees losing their jobs were notified in several batches during the second quarter, which ended June 30.

IBM reported cutting 14,213 jobs, the majority of which fell on its Global Services unit, with some workers also laid off in its servers and software businesses. A further batch of layoffs dismissed 1,400 workers from the company's Microelectronics division, which manufactures semiconductors.

IBM blamed the cuts on "the recent decline in corporate spending on technology services."

By Sept. 30, when most laid-off workers are expected to have departed, IBM's work force will have been cut from 320,000 to around 305,000, IBM spokeswoman Carol Makovich said.

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