High tech giant, International Business Machines Corp, (IBM) Corp is all set to axe about 15,000 jobs all over Europe in its bid to slash overriding operating costs and augment profits in the company.
Moving towards the reorganisation of the entire company, IBM will target its job losses mainly to Britain, according to company insiders. Shareholders of the company had apparently been pressurising the company regarding the increasing overhead costs along with the drastic drop in share prices.
IBM's global services division in the UK, Greenock, already has its staff getting jittery as deep job reductions are expected to take place in this unit. A spokesperson of the division admitted that an evaluation of the current operations was being done and said, “IBM is looking at evolving client needs and changes in the way we operate so we can meet those needs in the most efficient and productive manner possible, including re-examining our operations and organisational structure in countries around the world.”
However, no other information was revealed by the company as to the number and kind of job cuts to be effected. It stated that no final decisions had been taken and so ‘nothing could be announced’. While many of the employees will be found new jobs, there are possibilities of several others being simply laid off. In fact, voluntary redundancy programmes have also started taking shape across Europe and UK.
Meanwhile, operations to reorganise IBM’s European, Middle Eastern and African corporate structure are underway, which will again see several regional managers with IBM going home. About 580 slashes were done by IBM in the beginning of the month in Germany.
Posted
on : Wed, 04 May 2005 11:40 GMT | Business News
By : Pippa Fielding
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