IBM Laying Off "Large Number" of US Employees, Outsourcing to India Instead
IBM Laying Off "Large Number" of US Employees, Outsourcing to India Instead
Posted 03/26/2009 at 7:30am
| by Paul Lilly
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Citing an internal document, The Wall Street Journal reports IBM, who was recently ranked No. 3 on the "Corporate Citizens" list, plans to issue its largest number of layoffs in terms of revenue and employment, with 180,000 employees worldwide. Of them, IBM will cut a "large number" of US employees in its business service unit and look to India to fill the void, the Journal states.
According to "people familiar with the situation," the number of US jobs being cut isn't known, as IBM typically remains tight-lipped when it comes to layoffs. However, earlier this year IBM had sent notices of layoffs to roughly 4,600 US employees in its software, sales, semiconductor, and finance groups.
While this might be the largest shift in IBM's history, the company has also been linked to acquisition talks with Sun Microsystems. According to a New York Times article last week, IBM is considering spending nearly $7 billion to merge with Sun. Layoffs and job shifts would be one way to help fund the venture, which would have IBM and Sun accounting for about 65 percent of the market share for server computers running Unix and 42 percent of the total server market.
Image Credit: IBM
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Sebie Kay
January 26, 2010 at 9:46am
I havn't worked in the I.T. field for several years since I was laid off from my last job as a field support tech. Since then, all I.T. jobs went down hill. I have had to abandon the field for now... after all, I'm earning 40% more in a non-I.T. related field than I was as a field tech. That's sad. Anymore, I.T. in the U.S. pays mostly peanuts, and demands long hours. I'll sit on the sidelines for right now... but will still dabble in it on the side. You know, just in case I'm forced to move to India just to find a job... ANY job...
-=Do unto others... THEN RUN!!=-
Kamil
June 25, 2009 at 10:32pm
I think when President Obama raised the issue of applying service tax or some sort of additional taxes for US companies employing people outside the US he knew that the job cut situation is going to get worse in the near term future.
Does this account for OSHA compliance, does this amount to non-compliance on the part of IBM and is there none to take care of the interest of the American job in America.
trident60
April 13, 2009 at 1:31pm
Everyone can hate IBM, and decide to never buy another product from them, but what are they supposed to do ? Move overseas and try to make some money, or stay in the USA and lose their ass over the market they're in?
A lot of companies move overseas simply because there are less standards they have to abide by. All of those standards that OSHA, FCC, FDA etc... set, all cost companies money. (Don't get me wrong, I'm not saying those departments are bad, just that it makes it hard on businesses.)
Not to mention what companies have to do for just one person in the States. Insurance, 401K, and all sorts of other benefits. Who the hell would want to have a company here ? You would have a hard ass time making money.
Keith E. Whisman
March 27, 2009 at 10:33am
International Business Machines. I guess that means it's going to be a foreign Internation company to the US for now on. Assholes. I'll never buy another IBM typewritter from them again. Back in 1987 I learned in High School how to type on an IBM Typewritter with the neatto computer LCD on it and memory that could store a line of characters that allowed you to edit what your typing befor it got printed onto the paper. Pretty neat thing. Too bad PC's got really popular and powerful.
Keougmi
March 26, 2009 at 2:04pm
Pretty soon, there will be NO good jobs in the USA. How do we put a stop to this outsourcing to overseas? Let's Boycott anyone who lays off, and then turns around and hires overseas people. I have nothing against other people and countries, but when is enough enough?
Keith E. Whisman
March 27, 2009 at 10:39am
You can't put a stop to it. It's a free country and these companies are owned by people that want to make money and they can do what they want with their companies as long as it doesn't infringe on the rights of others.
What I suggest you do is start a company of your own but it'll be hard because the money these companies save by moving out will be used to destroy home grown competition.
You know how businesses usually tell you at the end of a transaction that they know that you have choices for your business and thank you for choosing them? Well these companies ultimate goal is to remove that choice. They want you to have no choice at all. Either WalMart or no shopping at all. Either TacoBell or no fast food at all.
Good grief companies are made up of evil bastards aren't they? Damn... Screw them all I'm moving to the forest to live off the land with a pet wild grizzly bear and an Indian man and an old 49er gold miner.
Yes, I will become grizzly Adams er Whisman.
I Jedi
March 26, 2009 at 3:23pm
I agree. Enough is enough. This NAFTA bs doesn't seem to be helping us and seems to be sending good, hard paying jobs overseas to people who will do it for less. The fact of the matter being is that our industrial industry is collapsing pretty badly and are computer industry seems to be taking hits of its own. Of course, we can all thank our favorite President ... Bill Clinton ... for fucking us over... Oh, just like he did with forcing banks to give out more loans to people who might not be able to pay it back.
Keith E. Whisman
March 27, 2009 at 10:46am
Oh don't forget Nafta was President Bush's great idea remember? The first Bush. He was so proud of it. All those meetings he had with the President of Mexico and the PM of Canada. That's why my politics are fucking eradic now. Every fucking politician is a worthless piece of shit. Bush=shit, Obama=Shit, Clinton=Shit. Actually Bush II was a Double Shit Shit for bailing out the banks and not stopping foreign aid and taking forever and a day to help in New Orleans but rushing to the aid of those affected by the sunami. Clinton didn't give a crap about security or terrorism as long as he personally wasn't affected by it and Bush went freaking over board with it.
As I said I'm sick and tired of politicians.
DMI PC Repair
March 26, 2009 at 11:46am
Hey why not? IBM is the main source for the Holocaust. Sure read it. They helped Hitler out to kill Jewish people. So this out sourcing thing is supprising? I think they need to stay in America. For if they do they will be the only one that do. Sure it's cheaper to pay some guy overseas a couple dollars a day. But that guy just took this job as a step up from sewing soccer balls. He's reading screan. He is not a tech! I got an idea. Why not take these call centers ad place them in high impacted job markets here in the US. Help the US first. Anybody can have call center job. Quite crying the US hurting and help us out IBM!!!!!! That money that stays in America can help everyone right now!!!!
horzo
March 26, 2009 at 11:34am
It's not like we're talking about support for your $99 Linksys router here. This is business services.
It's hard to imagine companies who are paying thousands of dollars for support contracts being happy about having to speak with some dude in India when a major system goes down.
kris79
March 26, 2009 at 10:34am
So what else is new? Everywhere I call these days has an Indian at the other end. The cowboys are losing this one.
On the other hand, I'm becoming conversant in Hindi...kris
Velcrow
March 26, 2009 at 10:28am
And here I thought it was well-known that the average US consumer despises calling foreign support... or was that just me? Thanks for sacrificing my satisfaction for your pocket.
win7fanboi
January 26, 2010 at 10:16am
and yet when they can get that dell laptop for 100$ cheaper they will jump on it vs a company with american tech support.
p.s: you can get a higher tier tech support if you choose to pay for it.... its going to be same for IBM as well. Companies getting a quote from IBM want to save money and they can "get over" the fact that they might need to play nice with people outside US. If their work is done in another part of the globe whats the big deal? Do you not buy Samsung/Sony products... why not boycott ps3/nitendo wiis/etc since they are not manufactured in usa? wake up!
n0ctis
March 26, 2009 at 10:10am
There's a plant in my area that's already trimmed the fat to the disdain and anger of our local politicians. Another wave is going to really kick our already second highest unemployment rate in the teeth.
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