Report: IBM to Lay off Some 3,000 Outsourcing Employees in U.S. in Q2

Ann All

While at least one analyst dismissed as "hogwash" technology pundit Robert Cringely's report of impending mass layoffs at IBM -- which we featured in a blog last month -- IBM is apparently planning to drop the boom on some 1,500 workers, mostly in its U.S. strategic outsourcing services business.

 

According to a recent silicon.com article, Big Blue will cut a total of 3,016 jobs by the end of this quarter.

 

It's unclear as to whether this move is actually part of the so-called Project LEAN referred to by Cringely, which he said would involve laying off one American worker for every overseas hire in the company's Global Services division.

 

Whether or not this ends up being the case, IBM is obviously being forced to tweak its outsourcing model to accommodate current market realities. With customers increasingly opting for shorter deals with multiple suppliers vs. single huge contracts with companies like IBM, it will be necessary for IBM to shed some human resources in order to remain competitive.

 

The U.S. services division employs some 128,000 people, part of Big Blue's overall global workforce of 355,000. In what would seem to be a huge understatement, an IBM spokesman quoted in the silicon.com article says the strategic outsourcing business is "quite dynamic."



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