IBM to shed thousands of European jobs
IBM has announced it is to shed between 10,000 and 13,000 jobs worldwide, with the majority of the cuts planned for Europe.
IBM was one of a number of technology companies to report gloomy quarterly financial figures back in April, and to help reduce overheads it is going to axe a pan-European management layer.
The company is now looking to create a number of smaller local operating units in Europe, with the emphasis on direct client contact.
According to a company statement the change is aimed at ‘reducing bureaucracy and infrastructure in lower-growth countries and creating teams that can work across country borders, shifting more employees into direct client roles that support the company’s plans to deliver higher-value services and products.’
No further details have yet been released by IBM UK.
As always, such cost-cutting exercises come at a price. IBM estimates that it will record a pre-tax charge of up to $1.7 billion in its next financial quarter to pay for the redundancies and reorganisations.