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By Martin LaMonica, News.com
Posted on ZDNet News: May 4, 2005 8:48:00 PM

IBM plans to cut between 10,000 and 13,000 positions worldwide and to reorganize its management structure.

The changes, which will mostly affect IBM's European operations, will result in a charge of between $1.3 billion and $1.7 billion in the second quarter this year and "yield benefits" in the second half of the year, the company said Wednesday.

The restructuring, a significant move for the company, was expected following Big Blue's disappointing first-quarter 2005 earnings. Last month, IBM Chief Financial Officer Mark Loughridge said the company would undergo a "sizable restructuring" to address weak areas, notably in Europe.

IBM said employee reductions will include both layoffs and voluntary departures. The majority of the cuts will be in Europe, where the company has initiated discussions with labor organizations.

The reorganization involves the streamlining of management in Europe. IBM said it will eliminate its pan-European management layer to reduce internal bureaucracy.

"IBM will create a number of smaller, more flexible local operating units in Europe to increase direct client contact," the company said in a statement.

The plan also calls for IBM to move some of its European personnel who work in its IBM Global Services division and consolidate them in fewer locations worldwide.

Loughridge will offer more details about the restructuring Thursday morning, the company said.

  • Talkback
  • Most Recent of 117 Talkback(s)
created your own job
Hello MerleBreiland, I saw your posting on ZDNet, what type of WFH products & services did you sell? Just curious. Thanks. Arnie marcharn@hotmail.com... (Read the rest)
Posted by: marcharn Posted on: 05/19/05 You are currently: Logged In | Log out
Typical reaction... Mike Cox   | 05/04/05
Right on the mark John L. Ries   | 05/04/05
Wow Mike Linux User 147560   | 05/04/05
Re:Typical reaction... DB_z   | 05/05/05
How Bloated are They? Muddy_z   | 05/05/05
IBM re-structuring Ribbink   | 05/04/05
That's what Europe deserves! terrym0021   | 05/04/05
Not all countries in Europe are like that balsover   | 05/04/05
Decently?? luckyg   | 05/04/05
Europe rushmore   | 05/06/05
from the uk diconal   | 05/04/05
Directly from Italy gattox   | 05/05/05
I don't agree whitpain@...   | 05/05/05
What does you mean by slow down gattox   | 05/05/05
Europe and Layoffs rushmore   | 05/06/05
Directly from the U.S. dill7278   | 05/05/05
Social Responsibility? alceo@...   | 05/05/05
Social Responsibility TrustMe_z   | 05/05/05
social - ism ? Care_z   | 05/05/05
Socialism rushmore   | 05/06/05
I'm not an employee ... gattox   | 05/06/05
Unbelievable carronp@...   | 05/05/05
Unbelievable Tsilva   | 05/05/05
china will eat you benso   | 05/05/05
That's what Europe deserves! chrisf7011   | 05/05/05
The poster's comments probably stem FilledOut   | 05/05/05
Do not wish bad jhrozo   | 05/05/05
Jobs Cut M2150ad@...   | 05/04/05
IBM Job Cuts Rocas   | 05/04/05
Spend one hour in an IBM plant ... johns_z   | 05/04/05
European business practices force companies to move elsewhere. MerleBreiland   | 05/04/05
uk again diconal   | 05/04/05
My comments apply to the "continent" MerleBreiland   | 05/04/05
Yeah, ask the people in France. jrbeaman   | 05/04/05
Boh ? gattox   | 05/05/05
Yes, I've been to Europe MerleBreiland   | 05/05/05
I'd add one more thing whitpain@...   | 05/05/05
excessive time off! chrisf7011   | 05/05/05
Naive? metre   | 05/05/05
Directly from Italy gattox   | 05/05/05
You made your choice MerleBreiland   | 05/05/05
Well. Some of us, do hope America will bail us out. Again! computer_man   | 05/05/05
Incredible !!! gattox   | 05/05/05
More naive? metre   | 05/05/05
... places that value efficiency gattox   | 05/05/05
I *think* he meant to say... SysAn63   | 05/05/05
Companies only pass on cost of taxes to their customers. MerleBreiland   | 05/05/05
Correction: GREED compels businesses to move elsewhere SysAn63   | 05/05/05
I would hope the business reference of today was not "Ferris Buller's Day MerleBreiland   | 05/05/05
I Agree... SysAn63   | 05/05/05
Thank you. MerleBreiland   | 05/05/05
created your own job marcharn   | 05/19/05
Simple answers? metre   | 05/05/05
Hey, aren't lengua99   | 05/08/05
Restructuring should start at the top balsover   | 05/04/05
Restructur from top down, yes. But..... larrybell_2000@...   | 05/04/05
Not cut at the top??? Look at HP! MerleBreiland   | 05/05/05
Problem is... SysAn63   | 05/05/05
You have a very valid point. MerleBreiland   | 05/05/05
IBM too big, too stodgy as usual dprang@...   | 05/04/05
IBM db2xpert   | 05/04/05
Exactly. jrbeaman   | 05/04/05
You right. computer_man   | 05/05/05
IBM chop 10,000 jobs a_spicer@...   | 05/04/05
Message has been deleted. FirstNLastN   | 05/04/05
Message has been deleted by idiots from ZDNet FirstNLastN   | 05/05/05
Now, FirstN, what you said was... Anton Philidor   | 05/05/05
Globalization rsnyder@...   | 05/04/05
The World Is Flat r.duggan@...   | 05/04/05
Eye kuddint hav spelt it better! Write-on! pundamentalist   | 05/04/05
Running a company trm1945   | 05/04/05
Jobs at IBM worknites   | 05/04/05
"Trying to make this... s_gamgee   | 05/05/05
Old IT people have very long memories lavertu@...   | 05/04/05
Ed1, you are wrong my friend.. mevande@...   | 05/04/05
ED1 dragonlen@...   | 05/04/05
The rule of reduction: Anton Philidor   | 05/04/05
Another EXCELLENT post! pundamentalist   | 05/04/05
Investors' only true return... Anton Philidor   | 05/05/05
Another EXCELLENT post! dirtyratjim@...   | 05/05/05
RE: iwish40   | 05/04/05
Interesting turn of events sxswann   | 05/04/05
Boy, ohh, BOY! Did YOU hit the "Bullseye"! pundamentalist   | 05/04/05
IBM will surive and prosper again mevande@...   | 05/04/05
They sad the same thing about Enron... computer_man   | 05/05/05
Bringing down a major company... Anton Philidor   | 05/05/05
This is the reason why Microsoft ought to be audited. systemcleaner   | 05/04/05
Audit Microsoft veseng   | 05/04/05
It didn't start with 'ole "Georgie Boy" ya' know! pundamentalist   | 05/05/05
Audit them all FilledOut   | 05/05/05
If you're good, you're good... chromedome   | 05/05/05
I guess you got confused. This isn't about MS. No_Ax_to_Grind   | 05/05/05
ahead of the curve darost   | 05/05/05
Goodbye IBM! niksgarage   | 05/05/05
Why do you guys work for IBM? computer_man   | 05/05/05
Ex-IBMer say's "nothing new here". xraywhf   | 05/05/05
Down with Dilbert s_gamgee   | 05/05/05
ex-IBMer - IBM is a good company mjtalbott@...   | 05/05/05
IBM good? computer_man   | 05/05/05
So why do they owe employees $6 Billion No_Ax_to_Grind   | 05/05/05
A lot has changed since you were there balsover   | 05/05/05
IBM a good company? Zenith545   | 05/06/05
Would you say you were in "break-fix" services? Anton Philidor   | 05/06/05
Another ex-IBMer: Keep perspective feskridge@...   | 05/05/05
Outsourcing? mark.guth@...   | 05/05/05
This is to be Expected jpr75_z   | 05/05/05
Typical US dirtyratjim@...   | 05/05/05
IBM is just moving jobs to cheaper countries. jimbo1999   | 05/05/05
Intel, Microsoft,, IBM.... They all do it balsover   | 05/05/05
Did they chop the Eminem look-alike kid FilledOut   | 05/05/05
I agree... SysAn63   | 05/05/05
What do you think would happen Justcauz   | 05/05/05
Jobs lost somewhere else this time... imnofool   | 05/06/05
They all smell like garlic anyways! Reverend MacFellow   | 05/06/05
Bad contribute gattox   | 05/06/05
Globalization! Reverend MacFellow   | 05/06/05
only 10.000? terracell   | 05/12/05

What do you think?

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