Abstracts » Business, general

IBM is likely in 1992 to trim 20,000 positions

Article Abstract:

IBM is expected to announce plans to layoff 20,000 more employees as part of its reorganization for 1992. This is in addition to the 20,000 layoffs already planned for 1991. The move would bring employee numbers down to 330,000 worldwide, which compares with 373,000 at the beginning of 1991 and 407,000 in 1986. IBM has been adamant in the past about not forcing employees to leave their jobs during difficult economic times. Instead, IBM sought to cut labor costs by offering employees incentives such as early retirement plans. But those incentives have become less lucrative, and IBM's market share is still on the wane as a result of slow sales of its new mainframe computers and high-end disk drives. IBM may have little alternative but to use layoffs. IBM's earnings are expected to be between $8 to $9 per share for 1992, over twice as much as the $4 per share posted for 1991, but less than the $10.51 per share, or $6.02 billion, posted for 1990.

Human resource management, Profits, Layoffs, Sales, Layoff, Cost control, Financial Analysis Software, Personnel Management, Cost Reduction, Incentives, Profit

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IBM to split up mainframe unit in restructuring

Article Abstract:

IBM unveils its reorganization plans, which includes splitting its mainframe group into three separate units. Data storage for mainframes, minicomputers and microcomputers will constitute a separate line of business, as will printers for mainframes and minicomputers. IBM sold its microcomputer printer business earlier in 1991. The new business units will have greater autonomy in managing manufacturing operations and setting prices. The announcements come only days after Carl Conti, the 54-year-old executive who has run the mainframe operations for six years, announced his retirement. Conti, who is well-regarded, said his retirement has nothing to do with the reorganization plans. Nicholas Donofrio will be in charge of the new mainframe group. IBM stock on the New York Stock Exchange fell to a one-year low on Dec 5, 1991, dropping $1.25 to $90.

Management, Planning, Appointments, resignations and dismissals, Mainframe computers, Retirement, Downsizing (Management), Mainframe Computer, Organization Structure, Stock, Decentralization, Donofrio, Nicholas, Conti, Carl

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