Skip to main content

IBM Dismisses Rumours Of Massive Headcount Reduction

IT giant IBM has dismissed a claim that it is considering a 75 per cent reduction in its permanent staff. The company said the report, which appeared on human resources news website Personnel Today, was baseless.

According to the article, the IT behemoth said it planned to reduce its total workforce to just a quarter of the existing 399,000 as part of an HR strategy due to be completed by the end of 2017.

The report said IBM would use "crowd sourcing", re-hiring dismissed workers under contract for specific projects. The company hoped to make huge savings on infrastructure, medical care and pensions.

It quoted Tim Ringo, IBM's chief human capital management, as saying that crowd sourcing was "an important step" for the future, leaving the company with a core of 100,000 employees and almost three times that number outsourced.

At the time, Ringo said that the strategy was only being considered. IBM has now clarified its position in an article on tech news blog V3, saying it not be making such massive job cuts.

It called the Personnel Today article "pure speculation about future job movements without any basis in fact", citing the growth of the company's workforce over the last eight years as proof.