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Scores of IBM workers in Triangle may lose jobs in cutbacks

Posted February 25, 2011

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— About 100 IBM (NYSE: IBM) employees at the company’s Triangle campus have been told they are losing their jobs, a source close to the situation told WRAL Tech Wire on Friday.

According to the source and information obtained by Alliance@IBM, the union seeking to represent Big Blue workers, the job cuts in RTP are primarily within the Global Business Services group.

Hundreds of workers are being let go across several divisions unless they are able to find another job within IBM over the next 30 days, said the source, who declined to be identified.

Jobs are also being cut outside of North America, but not on the same scale as within the U.S., the source said. The layoffs are the first IBM have made in recent months, the person added.

IBM employs an estimated 10,000 people in the Triangle.

Alliance@IBM also said it had received reports over the last 24 hours about cuts being made in addition to those it has been able to document.

An IBM spokesman declined to confirm or deny layoffs had occurred.

"IBM does not discuss its staffing plans publicly. However, we are constantly managing resources across a base of more than 400,000 employees as client demands evolve,” spokesman Doug Shelton said.

Resource action documents – that's IBM jargon for layoffs – provided to the union specified cuts of 193 in one business unit and 44 in another.

“We just don’t know” how many cuts were made at IBM’s campus in RTP or elsewhere,” said Alliance spokesman Lee Conrad. “What we do know is several units in IBM had job cuts yesterday.”

The known job cuts came in Application Management Services, IBM Global Account (193) and Client Value Transformation (44).

The Alliance has asked for IBMers to submit the “RA” documents in order to determine how extensive the layoffs are.

“The problem in counting the numbers cut is that IBM, instead of issuing one RA pack with the total number, issues an RA pack for each business unit within a division,” Conrad said.

“If we are only able to collect a few of the total RA packs, we are unable to see the big picture," he said. "IBM likes to keep the public in the dark on job cuts and makes the process of collecting information difficult.”

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  • Old-Guy Feb 25, 2011

    Gee, I wonder if IBM made the Top 100 companies to work for.. . again !!

  • whatelseisnew Feb 25, 2011

    Ah another article says maybe 100 at RTP. That is nothing. not very many scores atal.

  • whatelseisnew Feb 25, 2011

    "That is the problem.. how profitable is good. Does it mean you should make billions of dollars in profit and not share it with employees and then out-source American jobs to other countries so you can make more..."

    Actually IBM does share its profits, I know people that work there. They have an annual bonus program and managers can award stock options to non-executive employees. Also they share their PROFITS by providing a Salary and Benefits. The Sales force of course work off of a commission system as pretty much anyone in front line sales would do.

  • RM24 Feb 25, 2011

    "If we had unions left in this country, we could strike when Corporations like IBM do this. Unfortunately, the Republicans have effectively eliminated them.

    IF WE had unions we may not have companies like IBM even come to NC.

  • flouzzy Feb 25, 2011

    IBM's CEO just got a 9 MILLION dollar bonus on top of 1.8 Million dollar bonus. Wouldn't mind that so much if they hadn't hacked our pension to less than half and the cheapest healthcare package they offer non-medicare retirees costs $1300 a month.

  • ncdouglas Feb 25, 2011

    "I don't why you keep faulting the corporations. The corporations are run by its shareholders and the shareholders are average day citizens like me. As a shareholder, I expect the corporation to do whatever it takes to make it profitable."

    That is the problem.. how profitable is good. Does it mean you should make billions of dollars in profit and not share it with employees and then out-source American jobs to other countries so you can make more...

    We have started to focus way too much on profit.. and one day the cost will be greater than all those profits..

  • littlebobeep Feb 25, 2011

    If you want to keep jobs in the US, buy US made goods. Of course be prepared to pay US made goods prices as well. Now you know it won't happen for the same reason companies like WalMart do so well. We all want to pay the lowest price which means foreign made goods which means no US goods/jobs.
    We are our own worst enemy.

  • whatelseisnew Feb 25, 2011

    "If we had unions left in this country, we could strike when Corporations like IBM do this. Unfortunately, the Republicans have effectively eliminated them. You can thank the Republicans for ruining the middle class."

    That is hilarious. Unions eliminated themselves. They pushed for outsized salaries, benefits and pensions. The companies wisely moved on.

  • whatelseisnew Feb 25, 2011

    "Wrong they are going overseas because they'll work for 1/4 the salary of ANY job union or not. Everyone out there ready for a 75% pay cut? "

    Wrong. Actually in India for example, the wages keep climbing so the savings in labor are diminishing, plus you had the additional cost of managing projects in other countries. So the companies went in and are investing in plants and equipment and are creating consumers for these products in Country. In the meantime, because of the demand for skilled workers, employees have moved from company to company basically going to the highest bidder. It is still lucrative though because you do have less expensive labor and regs and you are expanding into new markets. Have no fear, someday India and China will outsource jobs to the U.S. to get the cheap labor.

  • wendyfuller Feb 25, 2011

    I made a resolution to purchase as much made in the US product I can. That includes food. Try to find apple juice in the supermarket that was produced in the US. Most is produced in China. US product is out there and not necessarily more expensive. The profit at all cost mentality is wrong and we're not thinking long term. God knows what the economy will be like for our children. We are our own worse enemy.

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