Local News

IBM Lays Off 1,000-1,500 Workers; RTP Employees Minimally Affected

Posted July 3, 2001 4:49 a.m. EDT

— Big Blue is laying off 1,000-1,500 workers in its Global Services unit. Much of that unit is headquartered in Research Triangle Park, but sources say only a very few workers will be affected. And those workers may be eligible for other jobs with IBM.

The layoffs come after IBM added more than 10,000 employees in the first five months of this year, totalling 315,000 workers worldwide.

The cuts are being made at various U.S. locations to respond to changing client demand and do not reflect a business slowdown, IBM spokeswoman Jan Butler said Tuesday.

Global Services, IBM's consulting and outsourcing arm, is one of the company's fastest-growing units. According to Gartner Dataquest, it is the world's largest information technology services unit.

Shares of IBM were off $1.15 to $113.20 in trading Tuesday on the New York Stock Exchange.

Employees losing their jobs were notified on Monday.