IBM layoffs of 6,000 to 8,000 jobs worldwide are a clear sign that “shareholders are more important than the employees,” as one IBM laid-off IBM electrical engineer employee in Essex Junction, Vt., described it. The IBM layoffs come to no surprise for many because after a dismal first quarter earnings report, IBM announced there would be layoffs in the second quarter, reported WCAX on June 12, 2013.
“International Business Machines Corp., the world’s largest provider of computer services, announced the job-cutting effort after releasing disappointing first-quarter results in April.”
On Wednesday, IBM notified Vermont’s Governor Peter Shumlin that companywide cuts by IBM would hit Vermont. However, IBM did not state how many people would be affected by the IMB layoffs in Vermont.
“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,” said IBM in a statement.
The IBM layoffs in Vermont are not the only layoffs that IBM has in mind. According to an International Business Times report, the computer giant IBM is only at the beginning of laying off employees in the United States “as part of a worldwide restructuring plan estimated to cost about $1 billion.”
The IBM layoffs are accompanied by words like “restructuring,” “workforce remix,” and “business model.”
IBM, like most businesses, does not work for the benefit of its employees but for the benefits of its shareholders. And shareholders want to make a profit; not a small profit, but a profit that can support a shareholder’s lifestyle.
After IBM’s first-quarter results in 2013 fell short of expectations of how much money shareholders would earn, the IBM layoffs ranging from “rank-and-file staff to executives” was to be expected.
According to Lee Conrad, the national coordinator for IBM employee organization, 1,200 employees in IBM’s Systems & Technology group have been laid off, 200 employees in the research division, and about 2,800 in software and sales & distribution.
According to a WebProNews Business report, in New York’s Westchester and Dutchess Counties, IBM’s clean sweep affected more than 700 people. In Ottawa, Canada, another 200 IBM employees have been subject to the IBM layoffs.
“CTV Ottawa reporter John Hua has been talking to employees who say the mood inside the campus is ‘gloomy’. Employees told Hua that up to 20 per cent of the Ottawa staff have received layoff notices. Some have been employed with IBM/Cognos in the capital for more than 30 years.”
And what does IBM have to say?
IBM spokesman Doug Shelton said in a statement, that “IBM is investing in growth areas for the future: Big Data, cloud computing, social business and the growing mobile computing opportunity. The company has always invested in transformational areas, and as a result we need to remix our skills so IBM can lead in these higher-value segments in both emerging markets and in more mature economies.”
Why use 56 words for the IBM layoffs if it can be said in 26 words?
“Honestly, I saw it coming. It’s hard to deal with the fact that the layoffs are basically saying the shareholders are more important than the employees.”