Although IBM insists this is not a cost-cutting measure, insiders point to comments by CFO James Kavanaugh in January that it would realize significant annual savings by the end of the year. In fact, the fact that the target was increased to 3 billion dollars shows that these cuts are on a larger scale.
The bulk of the cuts appear to be among employees in corporate operations and support, finance and operations, and customer service (Q2C) departments. Europe appears to be a particular target: half of global disruptions are predicted to occur there. Slovakia, Hungary and Bulgaria are mentioned as places where significant staff reductions are likely to occur.
The European Works Council, which represents IBM employees in Europe, is negotiating with the company over the planned cuts.
Source: Ferra
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