Will IBM layoffs mean more jobs sent overseas?
Criticism is mounting as reports surface that IBM is cutting 5,000 North American employees even as it increases its hiring overseas.
[ Slideshow: Most notable layoffs of 2009. ]
After the Wall Street Journal reported that IBM is planning to lay off about 5,000 U.S. employees, with many of the jobs potentially being transferred to India, IBM confirmed in a statement that it would be communicating to employees that jobs are being eliminated.
"This is a North American action. We are not communicating locations or the number of jobs as a result of this action," IBM said in a statement on Thursday.
The news around IBM potentially displacing American workers and relocating positions in India will not earn Big Blue any points in the court of public opinion. But financially speaking, industry watchers say offshoring work overseas could cut costs and improve service delivery for the company's Global Services division.
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IBM Layoffs
Criminal! AGs of the affected states and US AG should call IBM Execs to testify b4 the 'new' UnAmerican Activities Committee.Shame!
I like it! Great idea.
It would a funny sight to watch them squirm to try and justify these actions. Or explain how they're improving services in any way. Dell went the same road and look how it affected them - They're still trying to rid themselves of the stigma. Do not expect services provided by a third party employee to give a rats ass about your company the way a 'real' employee would. How many employees buy stock - how many call-center or 'global-service' employees buy stocks in the companies they service? The CEO pay structure is completely broken - they know it so are taking advantage of this time before we can focus on real pay for performance beyond cutting expenses to lift stock prices. IBM is baaaaaad, un-American, and provides crappy services - no matter how hard those in the article try and spin it. I feel bad for IBM's foot soldiers that are left. Maybe some of them can get together and start a good blog on what it's like to have a great company dismantled around you because board members never learned "you get what you pay for."