IBM is said to have let go of at least 1,300 of its U.S. workforce in its latest round of job cuts, according to employee group [email protected] Following weak first quarter results; the organization is currently undertaking a global restricting plan with more job-cuts set to follow in the coming months.
The job-cuts seem to be targeted at individuals across all divisions, with at least 222 individuals in marketing having been let go along with 165 from the semi-conductor division. Lee Conrad, a coordinator for [email protected], said that “just about every division at every location is being impacted.” The cuts seem to have a few divisions harder, with an ex-employee quoting, “Z Virtualization took a big hit. We (including me) lost 48 of 300 positions.”
IBM is looking to cut around 6,000 to 8,000 jobs globally this year in a bid to save $1 billion dollars. Following the job-cuts announcement, IBM shares fell 1.4 percent to $201.20 yesterday in New York. This year has been hard on IBM, which saw the Armonk-based organization’s shares tumble following its lower-than-projected first quarter earnings, in which it earned only $3.00 per share versus the anticipated $3.05, which led to its first earnings shortfall since 2005.
In an official statement, IBM said: “Change is constant in the technology industry and transformation is an essential feature of our business model. Consequently, some level of workforce remix is a constant requirement for our business. Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans.”