IBM lays off 500 workers in Vermont

Computer manufacturer requiring 3,000 workers to take week without pay

? IBM, the world’s largest provider of computer hardware, laid off 500 workers at its Vermont plant Monday and said an additional 3,000 would be required to take a week off without pay next month.

Spokesman Jeffrey Couture said the layoffs would take effect immediately.

“Essentially we’re doing this because we have not seen a turnaround in our industry,” Couture said.

While IBM posted profits for its second quarter, it lost money on its microelectronics business as the industry suffered a sharp downturn.

Many of those laid off were in higher-paying positions, the company said. IBM is Vermont’s largest employer, with more than 6,000 workers; thousands of others rely on the company for contracts and other business.

Employees learned of the layoffs in an e-mail from John E. Kelly III, senior vice president for the technology group. Kelly said he also would take a week without pay.

Many people at the plant in Essex Junction, a town of around 8,600, had been expecting bad news, but still took it hard.

“I put all my hopes in this place and it’s gone,” said Joe Pellitier, who said he had worked in engineering for five years until he was laid off Monday.

The workers who were laid off will remain on IBM’s payroll for 60 days and will be provided with career counseling, Couture said.

Ron St. Amand, left, and his brother, Randy, are among the workers who lost their IBM jobs in Vermont. The company announced Monday that it was laying off 500 workers at its Vermont plant. It said thousands more would have to forgo a week's worth of wages next month.

Rick Schwartz, who worked in the supply department, took some comfort in his severance package.

“It gives me an opportunity to move to Florida,” Schwartz said.