IBM To Cut Thousands Of Posts As Recession Bites

IBM is to layoff thousands of jobs in the UK, Ireland, and Germany, in a bid to transfer its operations to cost effective destinations in Eastern Europe, South America, China, and India, according to the reports from The Observer.

The company has already axed as many as 10,000 jobs in the US this year, with new spell of layoffs in Britain, Ireland, and Germany seems to be there in the offing, the newspaper quoted Lee Conrad from Alliance@IBM, a US advocacy group for IBM workers.

IBM has around 20,000 employees in the UK and 21,000 in Germany, with the UK contractors have already seen considerable pay cuts recently. Commenting on the situation in the region, Conrad said in a statement, “The jobs have already started going in western Europe. They are being reassigned to eastern Europe, India and China”.

The newspaper further reported that IBM employees in India get an average $5,000 in a year, as against $50,000 to $80,000 received by an employee in the US for a similar job.

A spokesperson for IBM confirmed that many of the company’s US employees had been laid-off in a “resource action”, but refused to comment on the reports of further job losses in the Western Europe.

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Our Comments

Even Big Blue is not immune to the current economic downturn. While it is likely that a fraction of the jobs being eliminated in the Western world will end up in India and elsewhere, there's also a significant number which will be eliminated altogether, either through voluntary redundancy or attrition.

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