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IBM layoffs will impact hardware workers
2009-01-08
Employees of IBM's hardware segment are likely to be most affected by the axe hanging over the jobs of 16,000 Big Blue staff.Media reports of 16,000 job cuts have created a sense of fear and insecurity in the minds of IBM employees here in Bangalore. Sources told the IT Examiner, ÒWe came to know about the 16,000 job cuts. The reports are true though nothing has been made official yet from the managementÕs side. The hardware segment will have the most number of job cuts globally. It will definitely have huge impact on IBM jobs mainly in parts like China, Europe and US. No such sign of massive lay-offs in India yet but fractional impact is unavoidable when such a huge numbers reduced globally.Ó A senior IBM employee said: ÒIf it's hardware employees that are going to be affected, then the IBM server business in India might get impacted too. So, it would tough to predict and categories IBM businesses in terms of lay-offs.Ó IBM couldnÕt immediately be reached to comment on the matter, but earlier told the IT Examiner, ÒIBM does not comment on rumours or market speculationÓ. But Big Blue didnÕt outrightly deny the reports which indicates the high probability of massive lay-offs. The Chinese PC maker, Lenovo took over IBMÕs PC segment in 2005 for $1.25 billion. Lenovo acquired the IBM PC to set its foot on the global market. LenovoÕs integration with IBM PC business was doing well over the past three years but recent quarterly results showed fall in the business. The company has now confirmed its lay-off plans saying the re-structuring has become necessary to save save at least $300 million by March 2010.
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