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IBM cutting jobs … quietly
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There’s been no official announcement but our sources tell us that IBM will cut about 5,000 jobs in the United States. The move adds similarly large cuts in the past few months, the sources said. The job cuts will account for over 4 percent of IBM’s U.S. workforce and will mostly be in IBM’s global services business, which includes outsourcing and consulting services.
An IBM spokesman declined to comment but readers close to the story are welcome to do so below.
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For those who will not like this development: jobs of multinational corporations will ultimately follow their revenue. If IBM gets 2/3 of its revenue outside US, about 2/3 of its wage bill will shift outside the US. Even though US represents about 30% of IBM’s workforce, it probably represents almost 50% of its wage bill. So there is room to go lower.
In india, leading giant Infosys also cut down jobs of 2100 employee. INFORMATION TECHNOLOGY is purely service sector. this is severe crisis in secondary sector like manufacturing. if manufacturing is weaker obviously it will severely impact on service sector.