IBM / Starts to Cut Jobs Amid Global Reduction

International Business Machines Corp. (IBM), the world’s largest computer-services provider, began cutting U.S. jobs today as part of a global restructuring plan announced in April, a person familiar with the move said.

The reduction targets employees with a range of seniority, from rank-and-file staff to executives, said the person, who asked not to be named because the information is private. Some U.S. workers began to receive notifications of the cuts last night, according to Lee Conrad, a coordinator for Alliance@IBM, an employee group. The restructuring will cost $1 billion worldwide, including severance expenses.

International Business Machines Corp., the world’s largest provider of computer services, announced the job-cutting effort after releasing disappointing first-quarter results in April. Photographer: Scott Eells/Bloomberg

IBM announced the job-cutting effort after releasing disappointing first-quarter results in April. The Armonk, New York-based company posted profit of $3 a share in the period, missing the $3.05 predicted by analysts — the first earnings shortfall since 2005, according to data compiled by Bloomberg. IBM said at the time that the job reduction would be concentrated overseas and mostly complete by the end of June.

Chosen excerpts by Job Market Monitor

via IBM Said to Start U.S. Job Cuts Today Amid Global Reduction – Bloomberg.