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Hundreds face IBM layoff Undisclosed number at Cambridge Lotus unit to lose jobs By Hiawatha Bray, Globe Staff, 2/28/2003
All of the job cuts are concentrated in IBM's global services business, which provides computer services to corporations and government agencies worldwide, and IBM's software business, which includes electronic mail, groupware, and knowledge management products made by Lotus. IBM Lotus spokeswoman Mary Rose Greenough declined to specify the numbers of layoffs overall or how many would occur at Lotus. But she said the layoffs amounted to less than one-half of 1 percent of those working in the global services and software businesses. With IBM employing about 180,000 in services and 35,000 in software, that would suggest there were no more than 1,100 jobs lost companywide. ''I would say this is not at all a significant impact,'' said Greenough, who noted that IBM has about 350,000 workers worldwide. Greenough said the layoffs reflected a ''rebalancing of skills'' within the company, rather than a slump in the company's performance. Like other technology companies, IBM has responded to the economic downturn by slashing jobs. The company last year laid off more than 15,000 workers, about 5 percent of its labor force at the time. In addition, IBM is still digesting last year's $3.5 billion acquisition of the consulting arm of PricewaterhouseCoopers LLP. The deal added 30,000 employees to IBM's services unit, along with many new clients. IBM warned last year that it would cut as many as 4,000 jobs as it integrated the merged businesses and eliminated redundant positions. Traci Gere, an industry analyst with International Data Corp., in Framingham, said she was not aware of the reasons for IBM's latest round of layoffs. But she said she suspects that the PricewaterhouseCoopers acquisition is a major factor. ''There might be some areas where they're looking to balance resources,'' Gere said.
This story ran on page E2 of the Boston Globe on 2/28/2003.
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