May 02, 2007
IBM lays off 1,315 workers, union says
Union group says cuts came from IBM's global services division and more reductions will come
Recommend ThisIBM laid off 1,315 U.S. workers from its global services division on Tuesday, a union group under the Communications Workers of America said Tuesday.
The world's largest technology company also released an unknown number of contractors, and job cuts will continue, Alliance@IBM said on its Web site.
An IBM spokesperson could not immediately be reached for confirmation.
The company said at an investors' conference last month that it would reduce costs in the U.S. and noted a slowdown in its U.S. enterprise business. IBM reported its net profit rose 8 percent year-over-year in the first quarter to $1.8 billion.
The layoffs come just a day after IBM announced plans to open a new call center in Daleville, Indiana that will eventually create 500 jobs. The IBM call center investment was reportedly made in return for a 10-year, $1.16 billion contract with Indiana's Family and Social Services Administration.
IBM ended last year with 355,766 employees worldwide, up from 329,373 in 2005, according to its annual report.
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