IBM plans $3 billion charge and about 20,000 job cuts; revamping plan will make units more independent, may lead to divestitures

Article Abstract:

IBM announces that it will take a $3 billion charge that will indicate a loss for the 4th qtr 1991 but will save $1 billion in 1992 and $2 billion in 1993. The $3 billion charge will cover approximately 20,000 job cuts and effect a 'redefinition' of its organization. Basically, the reorganization will give more autonomy to its divisions and could lead to divestitures. Corporate headquarters will assume a more limited role, similar to a holding company. While the restructuring of business units will be done gradually, each unit will produce its own financial statement by the end of 1991. IBM officials say that two-thirds of the 20,000 job cuts will be in the US while the rest will come mostly from Europe. IBM has been taking restructuring charges since 1985. In the 1st qtr 1991, it took a $2.26 billion charge for an accounting change.

Office machines, not elsewhere classified, Management, Computer industry, Business planning, Personnel Management, Reorganization, Financial Report, Losses

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IBM is entering software venture with Metaphor

Article Abstract:

IBM announces a joint venture with Metaphor Computer Systems Inc of Mountain View, CA, to produce an operating system enhancement that would speed software development for microcomputers. The software, not slated for release for several years, will run on either Unix or OS/2 and enable programmers to move applications from one operating system to the other with relative ease. The joint venture will use object-oriented programming. Analysts are cautious; they see software portability as a boon, but say the IBM/Metaphor joint venture may simply confuse customers who must already deal with a bewildering variety of hardware and software environments.

Computer programming services, Operating systems (Software), Computer programming, UNIX, Operating System, Strategic Planning, Programming Support, Metaphor Computer Systems, OS/2 (Operating system)

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IBM, Diebold to make, sell bank machines

Article Abstract:

IBM and Diebold Inc form a joint venture to develop and market automated teller machines for both the US and world markets. Diebold currently holds a 39 percent share of the US market for the machines, but only controls 12 percent of the nearly $3 billion world market. IBM has 9 percent of the US market, and 5 percent of the world market. For Diebold, who will own a majority interest in the company, the joint venture will give it access to IBM's worldwide marketing network. For IBM, the move is part of its strategy of finding markets to operate in, and then signing agreements with firms who have expertise in the area.

Calculating and accounting equipment, Automated teller machines, Diebold Inc., DBD, POS Terminals

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