As 7,500 jobs go to Lenovo, IBM continues “workforce rebalancing”January 29 - 11am
Following news that 7,500 IBM workers will join forces with Lenovo in the company’s newly acquired x86 server business, the tech giant has revealed more cuts could be on the way.
After agreeing to pay US$2.3bn for the IBM division, Lenovo will also acquire thousands of employees as part of the deal.
“Approximately 7,500 IBM employees around the world, including those based at major locations such as Raleigh, Shanghai, Shenzhen and Taipei, are expected to be offered employment by Lenovo,” IBM reported last week.
Yet the jobs shift may not be the last for IBM, who admit they are in the process of a $1bn “workforce rebalancing” plan.
“As we noted the call, because we are going to be taking our workforce rebalancing charges earlier than we did last year, it will be in the first quarter, so on a on a full-year basis, there won’t be any year-to-year impact,” Martin Schroeter, CFO, IBM told analysts.
“We do expect that will be about $US1 billion again same as last year, plus or minus $US100 million.”
The news comes after CEO Ginni Rometty revealed the company’s top earners will not receive their 2013 bonuses following a declining year of revenue.