IBM plans to rebalance its workforce — corporate code for layoffs — in the first quarter, said Martin Schroeter, the company’s chief financial officer, during a conference call with analysts Tuesday. The announcement comes as the company deals with a deepening slump in its hardware division, which includes manufacturing operations in Dutchess County.
Schroeter, who stepped into the CFO job Jan. 1, didn’t specify where Big Blue’s axe would fall, and suggested the layoffs would happen in March. But, he said that the financial effect of the layoffs on the company would be roughly the same as last year’s round. IBM’s layoffs in the second quarter of 2013 cost it about $1 billion.
The layoffs are intended to help IBM’s long-term financial performance. Because this year’s layoffs will happen in the first quarter, they’ll have a greater effect over the course of 2014, Schroeter said in the call, which covered the company’s results in the fourth quarter of 2013.
“We’ll get the payback within the year,” he said.
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via IBM planning layoffs for 1Q | recordonline.com.
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Posted by Kindra | May 9, 2014, 3:52 pm