IBM disputes report of 112,000 layoffs

IBM has announced a $600 million cut toward workforce rebalancing. Robert Cringely, tech blogger, wrote last week that IBM would lay off 26 percent of its staff, nearly 112,000 employees, due to restructuring, CNNMoney reports.

IBM replied to the report: “IBM does not comment on rumors, even ridiculous or baseless ones. If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has already announced the company has just taken a $600 million charge for workforce rebalancing. This equates to several thousand people, a mere fraction of what’s been reported.”

Currently, IBM has around 430,000 employees worldwide and has around 15,000 openings for growth areas within the company.  

Cringley told CNNMoney of the report, “From what I’ve seen so far, IBM is mainly calling me names, which means nothing. There’s a huge layoff coming on Wednesday. The numbers I’ve seen are from 24 percent to 27 percent.”

IBM does have a history of massive layoffs. They are known for having the largest layoff ever when they let go of 60,000 employees in 1993.

Sales are in a three-year slump for IBM and they were the worst performer in the Dow Jones industrial average last year.

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