IBM is gearing up aggressively to sustain profitability as the IT giant is speculated to announce new round of job cuts in an effort to curb down on costs. The job cuts are expected to total 5000 comprising of US work force and mainly affecting the service division. This development was reported by Wall Street Journal.
AFP reports that IBM plans to shift its work force to low cost regions including India. The new job cuts amount to 4 percent of IBM’s work force in USA. Earlier in January this year the company had announced job cuts but had not disclosed the exact numbers reasoning that they were well below the prescribed numbers required for a disclosure.
The new job cuts will be in the company’s global services business division which includes outsourcing and consulting services.
IBM had managed to record profits recently even on the back drop of the global meltdown. The company is also reported to be in talks with rival Sun Microsystems for a possible takeover of the latter.
IBM shares fell 0.42 percent to close at $97.95 on the New York Stock Exchange. |