Reports of IBM initiating a new round of layoffs have been intensifying in recent days. According to the IBM employee group Alliance@IBM, as of late afternoon Friday (June 14), the total number of jobs that had been reported eliminated totaled nearly 2,300.
According to the Alliance@IBM website, http://www.endicottalliance.org/, some 500 of the jobs that have known to have been eliminated have been from the Systems and Technology Group, IBM's hardware division, which includes not only the company's microelectronics activities but also servers, storage systems and other hardware.
The Bloomberg news service, citing Alliance@IBM, reported Thursday that the layoffs that had been reported so far included at least 165 semiconductor R&D jobs. But that total is all but certain to climb.
Lee Conrad, the administrator of Alliance@IBM, said the group has seen analyst reports speculating that the total number of IBM job cuts worldwide could totally between 6,000 and 8,000. Conrad said that sounds about right and speculated that the number of U.S. job cuts would likely be 4,000 to 5,000.
Conrad said his group should have more complete information next week as reports continue to come in.
Big Blue has been notoriously tight lipped about layoffs in recent years. The firm did not respond to an EE Times request for information about the layoffs.
Conrad's group believes that states where IBM is a major employer should force Big Blue to disclose concrete information about job cuts.
"It should be mandated that IBM publicly release these job cut numbers," Conrad said in an interview. "For many years, IBM has been hiding these things. For a company that gets taxpayer money that should be a mandate."
Conrad notes that the latest round of layoffs—which are taking place worldwide—continue to the trend of IBM decreasing the size of its U.S. workforce. Ten years ago, he said, IBM had over 160,000 U.S. employees. With the latest cuts, that number is now below 90,000 he said.
"There's a lot of stuff going off shore," Conrad said.
But tech jobs also get shipped abroad to places with more regulation and sometimes higher corporate taxes.
Certainly, many of the countries with growing semiconductor industries rank lower than the U.S. in the World Bank's "Doing Business" report.
A personal opinion, but because political opinions about small government attract a lot more airplay in America than elsewhere, a perception of impenetrable bureaucracy tends to develop amongst Americans more frequently than for other people, but really, American regulations are relatively lax compared to many other countries.
I don't think that was ever really the plan for the Fishkill fab, though. I think from the outset, it was there to supply IBM's internal needs, and all of the foundry/partnering activities were just to shore up the finances.
IBM doesn't invest in businesses that don't help increase EPS.
I do think the new CEO might be less inclined to look favorably on peripheral businesses that support the big iron cash cow, though. That could hurt over the long run.
IBM is exiting the US semiconductor business because the profit margins are too "low". The company enjoys higher profit margins on services.
The foundry boys thought they could sustain themselves by producing one-hit-wonders like game console chips. When that business dried up - they were toast. They'll probably continue to produce ASICs but the ASIC services will not be centered in the USA.
Didnt know "buddy" was considered name calling.
Please demonstrate where lower corporate taxes was the major driving force behind long term growth. I never said that lower corporate taxes are a bad thing. I just said that it is not the leading cause, and it alone can not change the long term climate.
I think you misunderstood the thinking comment.
Why would you not think countries in the span of decades are not capable of changing their business policies?
IBM has evolved into a company focused on systems, software, and services. in addition, the market for the ASICs and big iron processors IBM has developed for internal and external use has decreased. So, the announcement should not be a shocker. IBM is still a strong competitor, but semiconductors are no longer a key core competency for the organization.
This is what passes for discourse for some people - Bond Number cannot refute the demonstrably true statement that the lower taxes and pro-business attitudes in China and Russia are important factors in US companies out-sourcing so he reverts to what he knows best, name calling. And then he finishes with the suggestion that "some people should think a little more"....classic!
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.