IBM laid off 13000 people main Gregory streamlining of staff advisory services

The IBM officially announced on Wednesday that the highest will lay off 13 thousand people, most of them in europe. IBM's move is part of its global spending cuts, which are expected to bring $1 billion 300 million to $1 billion 700 million in pre tax spending on IBM. IBM revealed that the layoffs will rely on employees to leave the initiative plan, but insiders questioned.

IBM said in a statement, the restructuring is to concentrate on development of high growth markets, and will focus on the technical services department business enterprise consulting and services. Affected by this news, IBM shares rose 80 cents on the New York stock exchange after hours trading, to close at $77.88, or up to 1%. In the previous regular trading, IBM shares rose 61 cents to close at $77.08.

IBM announced that the company will begin to lay off 10 thousand to 13 thousand from the second quarter of this year, the total number of employees to 3% to 4%. As of the end of 2004, the total number of IBM employees was 329 thousand, of which about 100 thousand people in europe. According to IBM recently released 2005 first quarter earnings report, its revenue and net profit have not reached Wall Street expectations, especially in Europe and the Japanese market disappointing results. In order to reverse the weak growth performance, IBM announced last month that it may be a large-scale restructuring of the company, including layoffs. Dreyfus technology growth fund manager Mark - Hess (Mark Herskovitz) Kewei this said: "IBM is the layoffs to solve their own problems, but does not mean that the global technology industry decline."

IBM spokesman John - Vince (John Bukovinsky) based boucou said the company has already begun with the staff committee and other organizations will lay off time to negotiate. He also said: we will mainly rely on layoffs of employees in Europe to take the initiative to leave the program, the vast majority of employees are expected to lay off employees are voluntary turnover." But Hess Kewitz questioned whether IBM can successfully reach the goal, he said: I do not know how IBM can allow 10 thousand employees to leave voluntarily." Bukovinsky said that the main layoffs will begin in the third quarter, but he did not announce the completion of the timetable for layoffs.

IBM announced, operational and organizational structure of the company reorganization in Europe, including reducing the organization of low growth countries, and the establishment of cross regional product sales and service team. In a statement, IBM said: "we are going to create a smaller, more flexible operation in Europe to increase direct contact with our customers."