IBM Has Laid Off Over 3,000 Workers; Union Reacts
IBM labor union Alliance@IBM reports that the company has laid off over 3000 U.S. and Canadian IBM employees since June 12. The union claims that none of the IBM executives have sent out messages of regret or explanation to workers terminated in their divisions. Thus, these workers were given a notification that they were no longer needed, and shown the door.
"The leadership only cares about money," the union states. "In the drive to reach the goals of Roadmap/Roadkill 2015 CEO Rometty has neglected and disrespected IBM's greatest asset--its employees."
The union's Web site reports that the Software Group Marketing department has received the most cuts, letting 222 employees go. The company's Systems and Technology Group (STG) Semiconductor Research and Development division comes in second with 165 job cuts, followed by Software Group Information Management (137), Software Group Industry Solutions (126) and GBS AMS IBM Global Account (123).
Five other divisions have seen job just over 100 including STG Storage Systems Development (121), GPS Solutions and Delivery (116), Software Group Collaboration (115), STG Advanced Microelectronics Solutions (114) and STG Electronic Design Automation (106). Several divisions that are reaching the 100 threshold include Software Group Tivoli (98), STG Server & Storage Engineering System Test (97) and SWG Application and Integration Middleware (86).
IBM CFO Mark Loughridge hinted to the layoffs in April after reporting a miss on revenue and profit in 1Q13. "Given our first quarter performance, we now expect to take the bulk of our workforce rebalancing actions for the year in the second quarter, as opposed to last year when it was distributed across the quarters," he said. "Now, remember last year we had about $800 million in workforce rebalancing charges spread across the year. This year we expect the workforce rebalancing charges to be closer to $1 billion and concentrated in the second quarter."
An analyst told Bloomberg last month that the $1 billion figure likely amounts to 6,000 to 8,000 job cuts globally. The labor union currently reports that 128 jobs have been cut in Denmark, 250 in Italy, and 700 in Germany. Around 500 jobs are expected to be cut in China and up to 1,000 in Australia.
"IBM promoted great leadership in the last decades," one former IBM worker told the union. "The senior leadership team obviously did not attend these leadership classes. Instead they attended the class 'how to become a perfect coward'."