IBM to save big with job cuts
IBM`s restructuring plans, which will include 10 000 to 13 000 job cuts, will save the company $300 million to $500 million in the second half of the year and two to three times that in 2006.
01 June 2005
Mark Loughridge, IBM`s senior vice-president and chief financial officer, said last month that the amount of savings this year would depend on how quickly the job reductions occur. The cuts will represent more than a three percent reduction in IBM`s 329 000-person global work force. They will also result in a charge of $1.3 billion to $1.7 billion next quarter.
"We are driving the decision-making authority much lower in the organisation and bringing it much closer to our clients," he said. "Less hierarchy and a more streamlined process will create efficiencies."
Most of the restructuring changes will be put in place after IBM releases second-quarter earnings results in July, Loughridge said.
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