News Article
IBM to slash European workforce by 10%
US chip maker and IT services company IBM is planning to trim its European workforce by around 10% after reporting weak first quarter results.
US chip maker and IT services company IBM is planning to trim its European workforce by around 10% after reporting weak first quarter results.
The company said that between 10,000 and 13,000 of its 329,000 employees would lose their jobs. Some 80% of the cutbacks will be in Europe. The company has around 100,000 people in its European, Middle East and African division.
The restructuring – which is expected to cost US$1.7 billion – will also scrap the companys Paris-based pan-European operations. The current set-up will be replaced a number of small local units.
The company said that most of the cutbacks would be made through voluntary redundancies.
It is not clear how – if at all – the companys microelectronics division, which makes the PowerPC chips for Apple computers and the Cell processor for next-generation Sony Playstation, will be affected by the restructuring.
The company said that between 10,000 and 13,000 of its 329,000 employees would lose their jobs. Some 80% of the cutbacks will be in Europe. The company has around 100,000 people in its European, Middle East and African division.
The restructuring – which is expected to cost US$1.7 billion – will also scrap the companys Paris-based pan-European operations. The current set-up will be replaced a number of small local units.
The company said that most of the cutbacks would be made through voluntary redundancies.
It is not clear how – if at all – the companys microelectronics division, which makes the PowerPC chips for Apple computers and the Cell processor for next-generation Sony Playstation, will be affected by the restructuring.
