Union Says IBM May Cut 4,000 U.S. Jobs, Shift Work to India

Cutbacks could come tomorrow, Alliance@IBM says; message board dubs it 'Black Thursday'.

By Patrick Thibodeau

CONNECTIONS
IBM
Wed, March 25, 2009Computerworld IBM may be getting set to make its largest single workforce reduction thus far this year, according to the Alliance@IBM employee union, which says it has heard that the cutbacks will affect about 4,000 U.S. workers at IBM's Global Business Services unit.

Lee Conrad, the union's national coordinator, said he has been told by IBM employees that the expected job cuts may take place as early as Thursday. That day already has been dubbed "Black Thursday" in one anonymous post on a message board on Alliance@IBM's Web site.

The expected cuts were first reported by The Wall Street Journal, which cited anonymous sources at IBM in a story saying that the company plans to eliminate "a large number" of U.S. jobs at the Global Business Services division and shift more of its work to facilities in India. An IBM spokesman contacted by Computerworld today said that the company doesn't comment on "rumor or speculation."

Conrad said he can't be certain about the size of the latest cutback until IBM actually begins letting workers go. But like the Journal, he added, Alliance@IBM has heard that "big numbers" will be involved and that what may be driving the cuts is "the offshoring of U.S. jobs to India" and the Asia Pacific region.

IBM's U.S. workforce has been shrinking, while its overseas head count has been on the increase. The number of IBM workers in the U.S. dropped from 121,000 to 115,000 during the course of 2008; however, its overall employee count grew by 13,000 people last year. And already this year, the company has cut more than 4,600 jobs in the U.S. and Canada, according to earlier counts by Alliance@IBM.

The union—a Communications Workers of America local that doesn't have enough members to gain official recognition as a bargaining unit—has been the source of most of the information about the recent job cuts made by IBM. The company has confirmed that reductions were made, but it hasn't publicly announced them or said how many workers were affected. In addition, it has refrained from describing the earlier cuts as layoffs, instead saying that they were part of "an ongoing process that we do throughout the year to match skills and resources with our client needs."

IBM and other companies aren't required to notify government officials of layoffs unless the cutbacks reach a threshold set in the Worker Adjustment and Retraining Notification Act, also known as the WARN Act. The provisions of that law apply when there are 500 or more layoffs at one location. But at IBM, job cuts can be scattered among different facilities in the U.S. and other countries.


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER