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IBM has begun laying off U.S. workers as part of its 2013 restructuring, Bloomberg reports. Big...

IBM has begun laying off U.S. workers as part of its 2013 restructuring, Bloomberg reports. Big Blue stated in April it expects to record $1B in 2013 charges related to its job cuts, but didn't disclose how many employees would be affected. Oracle Research's Laurence Balter's estimates (based on the $1B figure) IBM is laying off 6K-8K workers, or less than 2% of its 434K-strong workforce. A decent portion of those cuts could happen in France.
Comments (5)
  • brianhutch
    , contributor
    Comments (255) | Send Message
     
    IBM continues to kill the golden goose (the American Consumer) that created the global growth in the first place .
    More short sighted self interest in corporate America
    12 Jun 2013, 04:36 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    What %age of revenue and profits is IBM making in the USA vs abroad?

     

    Other than OS2, in my lifetime, I don't recall ever buying an IBM product.
    12 Jun 2013, 04:49 PM Reply Like
  • jason_fund
    , contributor
    Comments (6) | Send Message
     
    1. IBM still makes the majority of revenue from the US. Yet has the majority of headcount located in low labor cost countries. (China, India, Brazil, Mexico etc)

     

    2. Basic math easily shows that the estimate of 8000 on the top end is false.

     

    $1,000,000,000 / 8,000 = $125,000 per employee let go. That would only be believable if the average employee let go was making upwards of $300k.

     

    This is because severance @ IBM is calculated by giving 2 weeks of pay for each year of service up to 24 weeks.

     

    A more realistic top range spend estimate is more like $50,000 per employee assuming everyone let go was making $100k and was eligible for 24 weeks. (Again, best case)

     

    This would yield at least 20,000 employees, but since the layoffs are focused on high skilled employees in high cost markets, it may be more like 15-20% of staff in each area targeted.

     

    My point is these are not trivially small numbers as the quoted estimate would suggest and will may strain IBM's capability to deliver.
    12 Jun 2013, 09:36 PM Reply Like
  • EXIBMer
    , contributor
    Comment (1) | Send Message
     
    Well....I just received the "call" tonight at 8:30pm. I am...was based in the US. That makes 1... how many ??,000 more to go.
    I suppose it is unavoidable when my counterparts within IBM's Global Delivery units are up to 10 x's less expensive...no that's not a misprint. Anyway... I guess I had better start polishing the resume.
    13 Jun 2013, 12:09 AM Reply Like
  • plumgirl
    , contributor
    Comment (1) | Send Message
     
    wow...letting go some of your best and brightest with no regard to long term benefits of a committed corporate workforce...
    13 Jun 2013, 01:49 AM Reply Like
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