10,000 jobs to be cut by I.B.M.; no layoffs planned; $2.3 billion charge set against earnings

Article Abstract:

IBM will attempt to reduce its US workforce by 10,000 when it offers a liberal early retirement package to workers. IBM also plans to consolidate and reduce capacity at several US locations. To finance the early retirement package and other cost-saving measures, IBM will take a one-time $2.3 billion charge against earnings in 4th qtr 1989. IBM management estimates the cost-cutting measure will save up to $1 billion annually. This cutback in the workforce follows two recent rounds of reductions. In 1986, 13,000 employees left the company through early-retirement and financial-assistance programs. In 1988, 7,000 more people left IBM. Since 1985, 7,000 additional employees have left due to attrition. If the latest early retirement program is effective, IBM's US workforce will have been reduced from a high of 243,000 in 1985 to 206,000.

Human resource management, Cost control, Cost Reduction, Financial Stability

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Earnings plunge at I.B.M.; quarterly sales fall across almost all of hardware line

Article Abstract:

IBM announces a decline of 48.7 percent for its operating earnings in the 1st qtr of 1991. Revenues also fell 4.5 percent over the same quarter in 1990. The company's stock was at $127.875 before the expected earnings were announced in Mar 1991. The price fell $12.75 that day, and fell another $2.125 when the results were announced officially, to settle at $108.50. Some analysts believe the company has made a significant error in minimizing the difficulty it would entail in shifting to a new generation of mainframe computers. Revenues for the 1st qtr of 1991 stood at $13.5 billion, down 4.5 percent from the previous year's $14.2 billion. Net earnings were $532 million for the quarter, compared with $1.04 billion in 1990.

Office machines, not elsewhere classified, Revenue, First Quarter

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Earnings fall 74.8% at I.B.M.; $2.4 billion charge cut 4th-quarter net

Article Abstract:

IBM's earnings fell 74.8% in the 4th qtr, due to a $2.4 billion charge covering the cost of shutting down some operations and reducing staff. IBM earned $591 million for the quarter, or $1.04 a share, compared with a year earlier when the company earned $2.3 billion, or $3.97 a share. Fourth-qtr revenue rose 2.3 percent to $20.46 billion, compared with $20 billion in 1988. Income declined 35.3 percent to $3.76 billion, or $6.47 a share, from $5.81 billion, or $9.80 a share in 1988. IBM reports that it expects to see financial gain in the second half of 1990, after the reorganization and streamlining efforts have an effect.

Personnel Management, Reorganization, Fourth Quarter

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