News

IBM Reorg: Up To 13,000 Job Cuts, Mostly in EU

IBM announced late Wednesday a restructuring that will result in layoffs of as many as 13,000 workers, primarily in Europe, and a pre-tax charge of up to $1.7 billion.

The main goal of the reorganization is “to improve the company's efficiencies, strengthen its client-facing operations and capture opportunities in high-growth markets,” according to a corporate statement.

Largely due to slowness in European markets, IBM plans to move employees into more direct client relationship roles and eliminate what it refers to as the “traditional pan-European management layer” that, to this point, has been necessary for coordinating activities across countries’ borders.

“As a result, IBM will create a number of smaller, more flexible local operating units in Europe to increase direct client contact,” according to the company’s statement. “On a worldwide basis, IBM plans to improve the efficiency of its services operations by consolidating much of the service delivery workload into fewer locations by using standard job roles, processes and tools.”

The result for workers will be the elimination of 10,000 to 13,000 jobs, while for shareholders, it will add up to a pre-tax charge during the second quarter of between $1.3 billion and $1.7 billion. Bottom line benefits to the company should begin to accrue during the second half, the company says.

Further details of the restructuring are due to be revealed Thursday morning in a conference call with senior vice president and CFO Mark Loughridge.

About the Author

Stuart J. Johnston has covered technology, especially Microsoft, since February 1988 for InfoWorld, Computerworld, Information Week, and PC World, as well as for Enterprise Developer, XML & Web Services, and .NET magazines.

Featured

  • How To Use .CSV Files with PowerShell, Part 1

    When it comes to bulk administration, few things are handier than .CSV files. In this two-part series, Brien demos his top techniques for working with .CSV files in PowerShell. First up: How to create a .CSV file.

  • SameSite Cookie Changes Rolled Back Until Summer

    The Chromium Project announced on Friday that it's delaying enforcement of SameSite cookie changes, and is temporarily rolling back those changes, because of the COVID-19 turmoil.

  • Basic Authentication Extended to 2H 2021 for Exchange Online Users

    Microsoft is now planning to disable Basic Authentication use with its Exchange Online service sometime in the "second half of 2021," according to a Friday announcement.

  • Microsoft Offers Endpoint Configuration Manager Advice for Keeping Remote Clients Patched

    Microsoft this week offered advice for organizations using Microsoft Endpoint Configuration Manager with remote Windows systems that need to get patched, and it also announced Update 2002.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.