IBM to Layoff 5000 Workers
Business Machines Corp. (IBM), which is the world’s largest computer service provider, has announced to slash its workforce by laying off more than 5,000 employees following its massive profit losses due to weakening demand and slumping sales. In January, the company has also laid off more than 4,000 workers.
In line to adopt a cost-cutting measure to keep its finances afloat amid the ongoing economic crisis, International Business Machines Corp. (IBM) will reduce its workforce by slashing more than 5,000 employees in addition to January’s 4,000 job cut, according to a Bloomberg report.
According to an official who asked for anonymity, workers from the US are the ones who will most likely be affected by the massive workforce reduction.
Since last November, the company has laid off more than 823,000 employees. With this massive workforce reduction, which has also been made by many company giants, has pushed unemployment rate in the country to more than 8 percent, the highest result for more than two decades.
Meanwhile, IBM’s stocks also plummeted to 35 cents to $97.95, a result from the declining sales and weak consumer demand. Despite this gloomy condition, IBM CEO Sam Palmisano still expressed optimism by saying that the company will experience sales growth by 2010 in foreign countries where it operates including China, Brazil, India, and Russia.
IBM has been known to frequently adopt massive layoffs that it spends an estimated $300 million to $400 million every year for job cutting costs including severance pays to its employees.
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