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IBM layoffs hit India, Europe

Zafar Anjum | Feb. 13, 2014
2,000 may lose job in India, 13,000 layoffs worldwide, report Indian media

Media in India and UK are reporting that tech giant IBM is laying off some of its employees in India and Europe as part of a global layoff exercise.

Though figures are not confirmed by IBM, DNA India reports nearly 2000 employees may lose their jobs in India, 1000 of which in Bangalore alone. Worldwide, the figure could be as big as 13,000.

The Business Standard reports that the company has asked several of its employees in its hardware business unit to quit but 'the total number of employees impacted could not be confirmed'.

So far, IBM has not responded to any media queries.

IBM's employee union in the US, however, confirmed the news, said The Business Standard. "Yes, IBM India is firing a large number of workers today. We do not know how many, or how many are still employed. We are extremely concerned in IBM's drive towards its goal of $20 earnings a share for 2015, it is discarding its greatest asset - its employees. IBM India employees are being terminated and forced out of the company, as are thousand of hardworking IBM workers around the world. We express solidarity with all being impacted by IBM's callous disregard for its workers," said Lee Conard, national coordinator, Alliance@IBM CWA Local 1701.

The report citing sources said the layoffs in India were taking place in IBM's systems technology group. This 8,000 employees-strong group focused on the hardware business. For about a year, the company has put a freeze on hiring in its software and services units in India, an IBM employee told The Business Standard.

The Register in the UK reported that job cuts were also ongoing in Europe, "with countries hit so far including Norway (35 jobs), France (between 438 and 500), Belgium (105), Italy (430), and the Netherlands (240)."

According to Conrad, the number could reach 15,000 worldwide.

The UK website also noted: "Reports and rumors point to the Indian cuts slicing into IBM's Systems and Technology Group - which seems likely, given IBM's recent sale of one of the group's main technical assets, the System X server unit, to Chinese manufacturing giant Lenovo."



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