IBM is planning to lay off workers in its Global Technology Services (GTS) wing this coming Friday, according to insiders.
Global Technology Services, which builds networking infrastructure and provides high-availability systems among other things, is part of the IT titan's Global Services division, which employs about 190,000 people worldwide.
Lee Conrad, an ex-IBMer and national coordinator of the Alliance@IBM union, said on Monday that staff had told him that up to 20 per cent of the GTS workforce is at risk. "I have received information that a resource action will happen this Friday," he told journalists via email.
Earlier this month, Conrad warned GTS could be sold off completely. He also announced that Alliance@IBM would be ceasing its activities after its member numbers collapsed as Big Blue shed employees.
Separately, Global Equities Research’s Trip Chowdhry issued a note to analysts suggesting that IBM could lay off a quarter of its 380,000-strong workforce this year, after suffering its 15th consecutive quarter of falling revenue.
Conrad also reported that IBMers have had their maximum severance payout – calculated from the number of years worked at the corporate giant – slashed from 23 weeks to one month.
A spokeswoman for IBM Global Technology Services was not available for immediate comment. ®