IBM Corp. plans to lay off about 5,000 U.S. employees in a new round of job cuts, the Associated Press has learned. The move reflects IBM's aggressiveness in shifting labor to lower-cost regions like India and keeping its profits aloft at a time when other technology companies' earnings are tumbling.
An IBM manager knowledgeable about the plans said the cuts will come from the services division. The person spoke on condition of anonymity because he was not authorized to discuss the plan publicly. The cuts will affect about 4% of IBM's U.S.-based work force, which totaled 115,000 at the end of 2008. IBM has about 400,000 employees worldwide.
Meanwhile, Google is jettisoning nearly 200 workers in its largest round of layoffs yet, demonstrating that even highly profitable companies are feeling the recession's pinch. The job cuts affected less than 1% of the 20,200 workers employed by the Internet's search leader.
Coming off a year in which it earned $4.2 billion on revenue of $22 billion, Google still is trimming its expenses in attempt to protect its profit margins and prevent its slumping stock price from falling even further.
The companies jointly announced in February that people who use Google Health can now automatically stream data from medical devices into their personal health records using IBM software.