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Job cuts in IBM India hit the nation hard

Posted: 19 Feb 2014     Print Version  Bookmark and Share

Keywords:IBM  layoff  Lenovo  x86 server 

If IBM cuts follow a similar plan as implemented in 2013, some 13,000 layoffs across its workforce of more than 434,000 are expected. That 2013 plan led to hundreds of layoffs in North Carolina and about 3,500 across North America, based on documents and sources. IBM still employs about 9,500 people across North Carolina.

Globally, other tech firms such as Intel and Texas Instruments are reported to be laying off 5,000 and 1, 100 employees respectively.

Even in India, there is speculation that iconic IT firms may well lay off up to 2,500 staff each during the January-March quarter.

"Sacking, though a tough choice should be done when needed but sensibly and not in such an inhuman manner. We know that companies have to do it, across the world and even in the US, there were so many lay-offs during recession," said an IBMer on condition of anonymity.

"Hundreds of us have left our cities and made Bangalore our home because we were employed by IBM here. IBM was such a well-reputed company and we were so proud to work here. There are several premises where IBM operates in and each has become a landmark in the city. Tell an auto rickshaw driver that some address is near the IBM building in say, Bannerghata or Hebbal, he takes us unerringly to the correct address. Our parents are also so shocked at this turn of events," said another young IBMer, who came from Kolkatta.

Real estate business has been booming because of the IT population in Bangalore where many of them have bought apartments on housing loans. "Banks would immediately sanction loans when we say we work for IBM. Now, the question is how are we going to pay the monthly installments without a job?" laments another IBMer who used to for work with the STG group.

In India, Bangalore is a key centre for IBM with major office blocks in Manyata Embassy Business Park in Hebbal and Embassy Golf Links near Domlur and Bannerghata, which are sprawling campuses employing thousands of engineers.

When contacted by PTI, an IBM India spokesperson said, "As reported in our recent earnings briefing, IBM continues to rebalance its workforce to meet the changing requirements of its clients and to pioneer new, high value segments of the IT industry."

"To that end, IBM is positioning itself to lead in areas such as cloud, analytics and cognitive computing and investing in these priority areas. For example, we have recently committed $1 billion to our new Watson unit and $1.2 billion to expand our Cloud footprint around the world," the spokesperson further said.

- Sufia Tippu
  EE Times

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