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IBM Lays Off 2,400 People As Jobs Go Overseas

By - Source: Tom's Hardware US | B 57 comments

IBM has axed around 2,400 members of its staff in the U.S., replacing them with overseas workers instead.

Bloomberg cites an employee advocacy group, Alliance@IBM, that says IBM has axed 2,400 members of staff, mainly from the company's U.S. operations. Spanning several divisions, the nationwide cuts occurred earlier this week. Alliance says that yesterday, 500 jobs were cut, but the group has been updating the number as it receives more severance documents.Lee Conrad, national director of  Alliance@IBM told Bloomberg, "We're getting reports from employees that they’re training the overseas replacements as they are getting cut.”

The cuts represent less than 1 percent of IBM’s workforce of 399,409. Last year the company cut 10,400 members of its staff in the United States and Canada.

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Top Comments
  • 13 Hide
    maestintaolius , March 3, 2010 6:30 PM
    Its a good thing we provide them with tax breaks so they can invest the money in overseas jobs.
  • 12 Hide
    gayan , March 3, 2010 6:26 PM
    welcome to capitalism....
    Its strange isn't it..we "hate" government regulation on the corporate sector but end up scratching our heads when the companies run after profits and lay off employees here in the US....
  • 11 Hide
    TwoDigital , March 3, 2010 5:48 PM
    wildwellSame old story, different company.

    It's not EVEN different company... IBM has been laying off US workers in favor of datacenters in India, Russia, and Argentina for several years now.
Other Comments
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  • 9 Hide
    wildwell , March 3, 2010 5:42 PM
    Same old story, different company. :( 
  • 11 Hide
    TwoDigital , March 3, 2010 5:48 PM
    wildwellSame old story, different company.

    It's not EVEN different company... IBM has been laying off US workers in favor of datacenters in India, Russia, and Argentina for several years now.
  • 2 Hide
    zoemayne , March 3, 2010 5:55 PM
    :( 
  • 8 Hide
    rhino13 , March 3, 2010 5:59 PM
    This is so sad.
    How does IBM expect Americans to afford their products when they fire them all?
  • 3 Hide
    thejester420 , March 3, 2010 5:59 PM
    its companies like this and others who are helping destroy our North American economy, were in a major recession/depression right now and people are losing the jobs to foreigners who will work for little next to nothing. I wish that the people overseas would realize that there getting screwed too, all they are doing is setting the president that people will work for little or nothing, they should be getting paid a lot more money. If there were actually REAL tariffs on internationally traded companies they would be much more inclined to stay in North America rather then go overseas to exploit poor people, which in turn, makes us just as poor.
  • 6 Hide
    ptroen , March 3, 2010 5:59 PM
    Globalization vs Local Taxes/Tax incentives vs Unions vs Recession. Ok fight!
  • -4 Hide
    Anonymous , March 3, 2010 6:01 PM
    I hope IBM fails entirely.
  • 4 Hide
    nforce4max , March 3, 2010 6:04 PM
    Just wait when tariffs really hammer these traitorous conglomerates. They drive down wages at home while they enslave people over seas for pennies on the dollar, a wonderful world right only for some deranged globalist.
  • 3 Hide
    omnimodis78 , March 3, 2010 6:20 PM
    our model of macroeconomics needs some (re)adjustments... This nonsense about cheap labour going to other nations simply doesn't make any sense anymore, it's getting out of control. At what point does it go so far out of balance where it doesn't even make any sense at all. I mean, if you take away 2,400 jobs, that's 2,400 less people buying things to make your economy viable and competitive. I know that's a simplified example, but I just don't get it. I was laid off a while back and as a result I spend a lot less than I did before, so how much money is really being saved if now people are also buying less products? Sheesh...
  • 12 Hide
    gayan , March 3, 2010 6:26 PM
    welcome to capitalism....
    Its strange isn't it..we "hate" government regulation on the corporate sector but end up scratching our heads when the companies run after profits and lay off employees here in the US....
  • 6 Hide
    gayan , March 3, 2010 6:30 PM
    omnimodis78our model of macroeconomics needs some (re)adjustments... This nonsense about cheap labour going to other nations simply doesn't make any sense anymore, it's getting out of control. At what point does it go so far out of balance where it doesn't even make any sense at all. I mean, if you take away 2,400 jobs, that's 2,400 less people buying things to make your economy viable and competitive. I know that's a simplified example, but I just don't get it. I was laid off a while back and as a result I spend a lot less than I did before, so how much money is really being saved if now people are also buying less products? Sheesh...


    well this is how it works.... 2400 loose jobs(2400X5=12,000 loose income), unemployment grows...supply of labor far exceeds demand, price (=wages) or labor goes down, it goes so down that it goes below india's and then companies cut jobs in India (create major economic havoc there) and start hiring in the US.... and the cycle continues....
    In the end, companies, CEOs, Share holders go from rich to super rich and employees in US and India(and the world) suffer and pick up the pieces.
  • 13 Hide
    maestintaolius , March 3, 2010 6:30 PM
    Its a good thing we provide them with tax breaks so they can invest the money in overseas jobs.
  • 4 Hide
    hillarymakesmecry , March 3, 2010 6:35 PM
    crabvomitI hope IBM fails entirely.


    So you want 397,000 people to be out of their jobs because they outsourced less than 1% of their workforce? Maybe they had to do it to stay competitive, just a thought.
  • 3 Hide
    yamagiru , March 3, 2010 6:44 PM
    This has been a growing trend for the last decade. IBM is not the only company now moving many jobs over seas for cheaper labor. EDS did it for several years, HP and DELL have been doing it for years, Allstate Insurance started doing it last year.

    This isn't something that is going to end any time soon...........
  • 5 Hide
    dman3k , March 3, 2010 6:58 PM
    So where are the Party of No right now?
  • 0 Hide
    Dawgsoverrebs , March 3, 2010 7:09 PM
    The trick is to lower the minimum wage here and raise tariffs on overseas jobs to keep those jobs here. People would rather have a lower paying job than no job, except for those who get welfare and wont get a job for fear of losing their free money.
  • 8 Hide
    Anonymous , March 3, 2010 7:11 PM
    “A Native American grandfather talking to his young grandson tells the boy he has two wolves inside of him struggling with each other. The first is the wolf of peace, love and kindness. The other wolf is fear, greed and hatred. "Which wolf will win, grandfather?" asks the young boy. "Whichever one I feed," is the reply.”

    - Native American Proverb

    I wonder which one corporations have been feeding?
  • 3 Hide
    Brent_NC , March 3, 2010 7:13 PM
    Here's to the IBM CEO and Executive Mangement rotting in hell. Cheers!

    Any company that thinks off-shoring their work is going to improve their position is lead by complete idiots. I have seen the work results of these moves and its a joke.

    "We can save X amount of dollars by off-shoring". You can lose X amount of business by building, developing and supporting crap products too. Any company that off-shores should seriously have their management reviewed for incompetence.



  • 0 Hide
    njalterio , March 3, 2010 7:21 PM
    The comments here are ridiculous. There are tons of educated people outside of the U.S. that are willing to work for a fraction of the cost Americans are willing to work. And you say the companies are being greedy?

    For the record, I am American.
  • 1 Hide
    thejester420 , March 3, 2010 7:22 PM
    "The trick is to lower the minimum wage here and raise tariffs on overseas jobs to keep those jobs here. People would rather have a lower paying job than no job, except for those who get welfare and wont get a job for fear of losing their free money."

    I'm gonna have to disagree with the lowering the minimum wage here, tarriffs alone would curb companies from moving outside the country, lowering our wages would only further the demise of our economy here, like someone mentioned earlier, people who make less money spend less money. if can't feed the economy by purchasing goods and services the economy will dwindle and die. Not to mention that its circular, if we allow these companies to do business like this we will all become slaves working for pennies. A company who has operations in North America should be bound by the same regulations that they have here. Its like how Shell has to abide by strict environmental laws in North America, but they can pollute all they want in South America, poisoning drinking water and causing serious hardships for the people who live there. its a double standard.
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