'L' word is official at IBM; cutbacks to include first layoffs in 50 years
Article Abstract:
IBM officially announces its first layoffs in a half-century. The computer giant will make some layoffs in order to reduce its corporate staff by 500 jobs, or more than 10 percent. IBM will offer employees inducements to leave voluntarily, but predicts that some layoffs will be necessary. The reductions include 350 jobs from the 3,700 workers who provide billable services to the corporation's various businesses and 150 jobs from IBM's 1,000-worker core staff. IBM, which had 301,542 employees around the world on Dec 31, 1992, says it may have to cut more jobs in 1993 than the planned 25,000. Some of those job cuts may come through layoffs. Until now, IBM executives held back on layoff announcements until they saw how many employees would accept voluntary separation. However, IBM Chmn John Akers appears to want to send a clear signal about the seriousness of the company's cost-cutting measures.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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IBM is forming wholly owned unit in U.S.S.R
Article Abstract:
IBM has set up a wholly-owned subsidiary in the Soviet Union. Company officials say negotiations started after IBM senior vice president Michael Armstrong met with Soviet President Mikhail Gorbachev in Jan 1991. Gorbachev was reportedly receptive to the idea. IBM's move marked the first time the USSR allowed a foreign company to have 100 percent-owned unit in the country. Although the Soviet government has become more open to foreign ownership, most foreign companies continue to be limited to joint ventures. IBM has had a representative office in Moscow since 1974. With the thawing of the Cold War, the company expanded its staff from six to 30, and landed a contract to supply 13,000 low-end microcomputers to Soviet schools. By setting up a wholly-owned subsidiary, IBM will have the advantage of hiring local labor.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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