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Axe to fall on staff at IBM's Global Technology Services 'this Friday'

Amid fears of unit selloff and word of severance pay cuts

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. ®

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