IBM Laying Off "Large Number" of US Employees, Outsourcing to India Instead

Paul Lilly

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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