IBM cuts 2,000 jobs

Manufacturing News, Source : TheManufacturer.com
Published : 31 May 2002 14:14

The world's largest computer maker, International Business Machines, has cut about 2,000 jobs from its services division, a union spokesman has said.

Employees have received paperwork that put the total cuts in services at 2,000, 10 times the 200 cuts that had been estimated by a representative of a union seeking to organise IBM workers.

New York-based IBM Armonk, confirmed on Thursday that it had made cuts in the division, which in 2001 was IBM's fastest growing division, but declined to comment on the number. The company said employees have 30 days to find a new job within IBM.

IBM's global services division employs more than 150,000 people, almost half of IBM's total 318,000 employees, putting the latest cuts at about 1.3 per cent of the services group and less than one per cent of the company overall.

IBM shares closed up 0.8 percent, or 65 cents, at $82.25 on the New York Stock Exchange, while the broad American Stock Exchange Computer Hardware Index gained 0.6 percent.

IBM shares have fallen 32 percent so far this year, while the broader hardware index is off 12 percent.

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