GO
Loading...

Enter multiple symbols separated by commas

IBM to Cut 1,315 Jobs in U.S., Union Says

IBM, the world's largest technology services company, is cutting 1,315 services-related jobs in the United States, a union trying to organize IBM workers said on Tuesday.

The cuts affect employees in a variety of areas including computer server systems operations, technology integration and management and financial services, said the Alliance at IBM , a union group affiliated with the Communications Workers of America, on its Web site.

Union representatives were not immediately available for comment. International Business Machines had 355,766 employees worldwide at the end of 2006, according to its annual report.

IBM spokesman John Bukovinsky said he could not confirm the number of job cuts. He said such cuts "should not be a surprise" as the company indicated after its latest earnings report on April 17 that it planned to cut costs in the United States.

Bukovinsky said the company does not anticipate a charge against earnings for the job cuts, which he characterized as normal for a services business that is dependent on the changing demands of clients.

"We're putting in place a series of actions to address our U.S. cost base, including a basic focus on resource and cost management disciplines and rebalancing of resources as we execute our global resource strategy," Chief Financial Officer Mark Loughridge said on a conference call with analysts on April 17, according to a transcript of the call.

Loughridge said in April that IBM's first quarter was "noticeably weaker" in the United States, especially in the industrial, financial services and communications industries.

The job cuts follow an IBM announcement on Monday that it planned to hire 500 people at a new customer call center in Daleville, Indiana, through 2010. The $2.9 million project is in addition to other IBM plans to hire another 500 employees in Indiana in the next three years.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • Cramer: Here's the no. 1 play in cybersecurity

    Guarding Your Portfolio? "Mad Money" host Jim Cramer's got the number one pick for protection services in today's digital world.

  • Underestimate Cisco at own peril: Cramer

    Mad Money's Jim Cramer takes a look at the cybersecurity space to see if it could also protect your money.

  • Fly with LUV?

    While remaining profitable, Gary Kelly, Southwest Airlines chairman and CEO, tells Mad Money's Jim Cramer the company continues to focus on being a great airline and offering great customer service.