IBM’s “resource action” (RA) has brought fears among its employees in the hardware business unit otherwise known as System Technology Group (STG). A reported 13,000 jobs could be axed with India being the first casualty of this operation. At 100,000 strong, IBM’s India staff form a critical part of the country’s IT sector.
Globally, IBM has 430,000 employees and with the heat coming down on the India STG unit makes this IBM’s second largest job cut after the US. This is part of IBM’s deal to sell its x86 server business to Lenovo. Lenovo handed over $2.3 billion for the low-end server division. After bleak earnings report, IBM took steps to growing its share value. The low-end hardware business was first to go.
“As we look forward to 2014, we’ll continue our transformation, shifting our investments to the growth areas, and mixing to higher value. We’ll acquire key capabilities, we’ll divest businesses, and we’ll rebalance our workforce, as we continue to return value to shareholders.” – Martin Schroete, IBM CFO.
An anonymous poster on the Alliance@IBM website says, “The carnage in India is proof that multinational (especially US based) corporations will brutally do what is best for them and Wall Street. They will use India while India is cheap and then abandon it and move on to something cheaper – Africa is likely the nest exploitation target. Hence, it is important you also do what is best for you”
Alliance@IBM is a trade union whose mission states:
Alliance@IBM/CWA Local 1701 is an IBM employee organization that is dedicated to preserving and improving our rights and benefits at IBM. We also strive towards restoring management’s respect for the individual and the value we bring to the company as employees. Our mission is to make our voice heard with IBM management, shareholders, government and the media. While our ultimate goal is collective bargaining rights with IBM, we will build our union now and challenge IBM on the many issues facing employees from off-shoring and job security to working conditions and company policy.