IBM
restructuring will slash 13,000 jobs in Europe
New York: International Business Machines (IBM) Corp.
has said it's restructuring operations will result in
the slashing of between 10,000 and 13,000 jobs, mostly
in Europe.
The
company also said that the pre-tax charge will amount
to between $1.3 billion and $1.7 billion.
The
majority of the layoffs are planned for Europe, where
the company began cutting jobs even before it announced
its disappointing first-quarter earnings last month. The
cuts, which will affect between 3 and 4 per cent of IBM's
329,000-person work force, are in line with analysts'
predictions.
IBM
surprised investors in April when it missed first-quarter
earnings estimates by 5 cents a share. IBM said it will
run fewer services offices worldwide and it will reduce
European managers.
"As
a result, IBM will create a number of smaller, more flexible
local operating units in Europe to increase direct client
contact," a company press release stated.
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