IBM's workforce reductions go on. After laying off an undisclosed number of workers in its U.S. software and service operations earlier this year, the company is preparing to cut thousands of jobs in Western Europe and move the work to Eastern Europe, India and other countries with cheaper labor, according to a report in a London newspaper.
IBM is planning on cutting thousands of jobs in the U.K., Ireland and Germany in the coming months, according to a report in The Observer on Sunday. The story quoted Lee Conrad, national co-ordinator for Alliance@IBM, an organization run by the Communications Workers of America union that has long tried to organize IBM employees.
The Observer story said the work done by the employees in Western Europe would be moved to Eastern Europe, India, China and South America, where labor is cheaper. The story said IBM employs 20,000 workers in the U.K. and 21,000 in Germany.
IBM has been trimming its workforce around the world in recent months. In January it eliminated several thousand jobs in its Software Group and last month reportedly cut as many as 5,000 jobs from its Global Business and Global Technology services operations.
While IBM has acknowledged that it has been "reallocating skills and resources" -- including cutting employees -- it has refused to provide specific numbers. The company didn't comment on reports of planned layoffs in Europe.
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