LayoffBlog.com

March 25, 2009

IBM Cutting More Jobs, Shifting Work to India

Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM employees working in India, the latest example of a successful company that is continuing to slash costs and take advantage of cheap Asian labor, WSJ reported.

Source: WSJ, Fox Business News

Update (March, 25, 2009): IBM to cut 5,000 jobs in U.S: According to Reuters: “The job cuts will account for over 4 percent of IBM’s U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM’s global services business, which includes outsourcing and consulting services.”

BusinessWeek also reports (“IBM Cuts Jobs As It Seeks Stimulus Money“): “..the company would be cutting high-skill positions domestically as it and others jockey for new business from the $787 billion stimulus package Congress enacted in February”

30 Comments »

  1. […] IBM Cutting More Jobs, Shifting Work to India (New) […]

    Pingback by Today’s Hot Layoff Topics « LayoffBlog.com — March 25, 2009 @ 10:26 am | Reply

  2. f*ck IBM maybe they should move the entire company to INDIA.
    worthless POS’s they are..

    Comment by OHBOY — March 25, 2009 @ 10:41 am | Reply

  3. IBM is Indian Business Machines

    Comment by retards — March 25, 2009 @ 12:10 pm | Reply

  4. This is OK as long as IBM will be developing and selling their stuff in India. If they are going to take it back to US and sell it — it should be a tax.

    Comment by Anonymous — March 25, 2009 @ 12:21 pm | Reply

  5. http://economictimes.indiatimes.com/IBM-to-shift-large-number-of-US-jobs-to-India-Report/articleshow/4316277.cms

    Computer giant IBM plans to cut a “large number” of US employees in its business services unit and transfer their duties to India,

    the Wall Street Journal reported on Wednesday.

    The newspaper, citing “people familiar with the situation,” said that IBM generally avoids public disclosure of layoffs and the number of US jobs being eliminated could not be determined.

    It said that earlier this year, IBM sent notices of layoffs to around 4,600 employees in its software, sales, semiconductor and finance groups.

    The Journal, citing an internal document, said the global business services group targeted for layoffs is the largest at IBM in terms of revenue and employment, with 180,000 employees worldwide.

    Comment by Orcell — March 25, 2009 @ 12:44 pm | Reply

  6. Good. Lenovo made IBMs laptop’s much better, the quality of the rest of their products will be improves on this move!

    Comment by Rabindranath — March 25, 2009 @ 4:49 pm | Reply

  7. […] NYC offices, laying off employeesSteve Baker on Submit News / Share Your StoryOrcell on IBM Cutting More Jobs, Shifting Work to IndiaSteve Baker on Nickel miner Vale Inco to cut 900 jobs globallyAnonymous on IBM Cutting More […]

    Pingback by Rumor: Massive layoffs are coming to IBM later this month « LayoffBlog.com — March 25, 2009 @ 4:50 pm | Reply

  8. IBM must die. Morons

    Comment by Anonymous — March 25, 2009 @ 5:10 pm | Reply

  9. I work in the San Jose office, and a few people in my area just got the bad news…

    Comment by SanJoseMisery — March 25, 2009 @ 5:33 pm | Reply

  10. Buy American? I think we should boycott any products coming from this unpatriotic company. Maybe they should fly India’s Flag outside their company.

    Comment by jobs for americans — March 26, 2009 @ 4:26 am | Reply

  11. i was laid off from big blow in 2001…during the first bush jr. recession. honestly it was the greatest thing that happened to me at the time. i hated the place and the only reason i got laid off is because i didn’t find another job before they could get to me. they did the same crap back then though…told everyone they were the only ones not announcing massive layoffs. but then shortly later started to secretly put people on “probation” for no reason only to let them go afterwords. i’ve never worked at a place where most of the people i worked with left ’cause they hated it…like me.

    Comment by Anonymous — March 26, 2009 @ 5:40 am | Reply

  12. Corporate greed knows no limits. It is understandable though. As their business matures and cheap competitors enter their space, companies have to outsource to lower cost or die.
    This is a normal business cycle. The only problem: US has failed to restart new business cycles while old ones matured.

    Comment by myphotoscout — March 26, 2009 @ 5:48 am | Reply

  13. For IBM to acquire Sun, MySQL and move dev to India is an obvious step since there are countless indian villages coding in Java and QA-ing Java junk code.

    Comment by Anonymous — March 26, 2009 @ 11:24 am | Reply

  14. kaiser was outsource to IBM something we didnt expect.

    Comment by joe — March 26, 2009 @ 12:23 pm | Reply

  15. IBM is anti-American. At this time, especially, American business management should be working on ways to invest in America. IBM is showing its true colors.

    Comment by JG — March 26, 2009 @ 4:29 pm | Reply

  16. […] IBM Cutting More Jobs, Shifting Work to India Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM […] […]

    Pingback by Top Posts « WordPress.com — March 26, 2009 @ 4:52 pm | Reply

  17. IBM is increasingly become a collection of mainly older white figureheads
    representing a business where all the work is completed in India. Thank you IBM for selling out a entire generation of technology workers. I hope your bonuses are on a par with AIG.

    Comment by JG — March 26, 2009 @ 6:31 pm | Reply

    • IBM does not care about the technology. It does care about big gov money and consulting services done abroad.

      Comment by Anonymous — March 26, 2009 @ 6:37 pm | Reply

  18. IBM should be locked out of any stimulus package $$$$$. They do not deserve it as they would just give those taxpayer dollars to India.

    Comment by JG — March 26, 2009 @ 6:42 pm | Reply

    • US cannot produce tens of thousands of java monkey coders overnight. IBM wants to hit three birds with one stone: to collect stimulus bucks, to get IT work done for less $$ and to put $$$$$ difference into their large pockets via bonuses. A Wall street style of thinking, you know. They should seriously consider to go into banking and/or insurance business.

      Comment by Anonymous — March 26, 2009 @ 7:08 pm | Reply

  19. we must begin to renew America. IBM must be set straight or outed

    Comment by JG — March 26, 2009 @ 7:16 pm | Reply

  20. Why is everyone blaming IBM, they are only doing what our congress lets them do, collect taxpayer money, layoff americans, outsource jobs overseas and get a tax break for doing all this, it is evident that CANDIDATE Obama’s promise to punish companies that outsource and reward those that keep jobs in the US has been forgotten by PRESIDENT Obama.

    Comment by Sailingwindward — March 26, 2009 @ 8:05 pm | Reply

  21. Anyone knows the numbers of Canadian casualties in the Toronto office?

    Comment by Canadian — March 26, 2009 @ 8:38 pm | Reply

  22. Get real guys. If Americans don’t want to study engineering, someone has to invent the wonderful new gadgets we all like.

    Check out this CompE class photo:

    http://www.engr.sjsu.edu/cmpe/
    (click for the humongous size)

    Notice something?

    Comment by get real — March 26, 2009 @ 8:53 pm | Reply

  23. you don’t get it. We are outsourcing America. It cannot continue and still maintain the country we all love and live in. The other countries manipulate monetary policy, taxes, import/export fees, and education assistance in order to compete.

    Americans have always been with the leaders in innovation….American management is being short-sighted and seeking early profit in exchange for long term growth.

    Comment by JG — March 26, 2009 @ 9:10 pm | Reply

  24. And in addition…..

    The racial diversity of the class of engineers has nothing to do with it. If any ethic group wants to gain legal access into American and study engineering, then they and we are better off. The discussion has to do with
    outsourcing those jobs to another country, and in this case subsidizing other countries for work that should be done in America.

    The Toyota car building model is a good example. They invest facilities, car design, quality control policies and some management and then employ workers to help build and manage a good quality product. True…Corp gets profits but also American gain expertise and manufacturing.

    A win on all sides, I think.

    Comment by JG — March 26, 2009 @ 9:42 pm | Reply

  25. 23, 24 I actually agree with you on most points. That picture, however, isn’t very diverse – and if we continue doing what we do, eventually the universities will just close, because locals don’t study and foreigners will just stop coming once most of production and R&D moves overseas.

    And I wouldn’t be too quick blaming “management” for being short-sighted. High short-term profits for companies trickle down to regular people, who can afford bigger houses, bigger cars, bigger TVs, etc. And I’m not so sure most people will be very willing to scale down in the name of long-term growth.

    Comment by get real — March 27, 2009 @ 7:04 am | Reply

  26. well, I am a part of senior management, not IBM, and I am very concerned with the ethics exhibited on the part of American management. The free
    market society, without regard to common sense, has contributed greatly
    to the economic situation we are in.

    The bottom line is any company, including IBM, should not be both outsourcing
    American jobs to India and also putting their corporate hand out for taxpayer
    money for infrastructure projects. That is just pure greed!

    Comment by JG — March 27, 2009 @ 7:53 am | Reply

  27. Uncle Sam: Hello. How are you today ?
    Other Sam: Doing well. Very well.
    US : I understand you are looking for investments in your company. Tell me a little bit about it.
    OS : Well, I respresent “ India Brazil Manilla China Over Real Patriotism INC.“. But at the end of the day, I represent me.
    US : I see. Can you give me an overview of your business plan and how it will map to our needs.
    OS : Well, I can you give me an overview of our business plan. But at the end of the day, you’ll get what we want.
    US : Huh? Uh, OK. Let’s hear your business plan.
    OS : Well, we have all this experience here in country A. We’re going to let them teach what they know is a short period of time to folks in country B. So at the end of the day, almost literally, we will have knowledge transferred elsewhere. So in essence we are promoting you education plan. Training others.
    US : Uh huh. Then what happens ?
    OS : Well, we let the experience in country A go away, and we have a shadow of it in country B. Which is good enough. At the end of the day.
    US : OK. And how long will this continue ?
    OS : A couple of months to a year. It depends on how long country B employees decide to stay with us.
    US : Not “how long will experience continue to exist in your company” ! “How long will this business plan continue” ?
    OS : Let’s see, 130,000 divided by 5,000 per quarter ….. hmm that’s a tough one. I’ll let you know.
    US : When ?
    OS : At the end of the day.
    US : Sounding a little tone deaf. And lyric deaf.
    OS : Huh ?
    US : Never mind. So what about this money we would give you ?
    OS : Well, for every 5,000 “training sessions” we conduct, we get to take roughly $300 million out of Country A’s economy. Less for you to have to keep track of. But at the end of the day, you’ll get a pretty cheap infrastructure.
    US : Cheap, but effective ?
    OS : LOL. No. Cheap. We’ve changed our motto from “Sure we’re expensive, but look at the quality you get” to “Sure it doesn’t work the way you want, but look how cheap it is”.
    US : I see.
    OS : Cheap, cheap, cheap.
    US : So the extra profit you make. It goes back into our economy ?
    OS : LOL. D’uh. We use it to hire more folks in Country B. And maybe even do a Research Center or two.
    US : OK. Thanks. I’ve heard enough.
    OS : Cool. So, what’s your decision ?
    US : I’ll let you know. At the end of the day. But don’t call us. We’ll call you.
    OS : Awsome. Here’s the number you can call. It’s our help desk. And, if you can, please call after 8:00AM Bangalore time. It’s cheaper that way.

    Comment by notechiesinusa — March 27, 2009 @ 1:58 pm | Reply

  28. 27, sad but true.

    Comment by Mac — March 27, 2009 @ 2:32 pm | Reply


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