IBM expands '92 forecast of staffing cuts to 32,000; employees rushing to take severance offer; charges put at up to $1 billion

Article Abstract:

IBM is cutting its work force by at least 32,000 employees during 1992, a number that is 12,000 more than previously expected. The total staff cuts amount to nine percent of the company. IBM will take charges totaling between $900 million and $1 billion. The largest impact will be felt in the 3rd qtr. IBM expects about two-third of its work force reduction to take place in the US. Industry analysts believe that the company may cut 40,000 jobs or more by the end of the year. In the US, IBM has hoped its employees would opt for the Individual Transition Option, which offers severance pay of two weeks' salary for every year of service plus extensions on medical and other benefits.

Strategic Planning, Employee Relations, Firings, Work Force Reduction

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IBM opens a European unit to sell low-priced PC clones made in Asia

Article Abstract:

IBM's Individual Computer Products International Ltd (ICPI) subsidiary will sell low-priced microcomputers manufactured by companies in Taiwan, Singapore, Malaysia, Germany and the United Kingdom. The European subsidiary will sell the Ambra line of low-end computers without direct involvement by IBM. The computer giant and its subsidiary will maintain a hands-off relationship to avoid tarnishing IBM's image as a premium-brand vendor. Analysts say that retailers are likely to push the IBM connection despite the firms wishes, and many believe that the situation could hurt sales of IBM's PS/1 home computer.

Microcomputers, Prices and rates, Marketing, Business planning, Microcomputer, Low Cost, Marketing Strategy, Subsidiary Company, Individual Computer Products International Ltd.

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