Thursday, 31 May 2007

IBM to Cut Almost 1,600 More Jobs

IBM is already on the second phase of lay offs for the year. The company has said that it will cut an estimated 1,600 jobs mainly in the US. Earlier this month the company had already cut 1,300 positions, most of which were outsourced to India. The company seems to be torn between costs and revenue...

IBM is already on the second phase of lay offs for the year. The company has said that it will cut an estimated 1,600 jobs mainly in the US.

Earlier this month the company had already cut 1,300 positions, most of which were outsourced to India.

The company seems to be torn between costs and revenue for its strategic outsourcing business in the United States. The company’s Chief Financial Officer Mark Loughridge said the company would "rebalance" its resources.

John Bukovinsky, an IBM spokesman said, "Strategic outsourcing is quite dynamic...contracts are renegotiated on a constant basis".

Bukovinsky said, "They're outsourcing various pieces, so the size and length of the contract is smaller". He added, "There's less upfront costs for us and they tend to be higher [profit] margin engagements."