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More blue news at IBM – Layoffs hit Global Business Services unit

More layoffs at IBM

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• Ex-IBM worker's layoff analysis
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RESEARCH TRIANGLE PARK, N.C. – Job security at IBM (NYSE: IBM) is something no employee can take for granted despite seniority and even as the global IT giant seems to be successfully battling the global recession.

IBM, which employs more than 10,000 people across the Triangle, acknowledged this week that a “small number” of layoffs had been made. Media reports and the Alliance@IBM, which is seeking to represent IBM workers, said the layoffs hit the Global Services Business Unit.

"We did notify a small number of employees in North America with some resource action," an IBM spokesperson told a New York newspaper.

“Resource action” is IBM speak for layoffs.

Both the Poughkeepsite Journal and the Times Herald-Record said hundreds of IBMers were affected.

Lee Conrad, the national coordinator for the Alliance effort, complained that IBM’s ranks of U.S. workers continues to shrink thanks in large part to offshoring.

The resource action took place despite the fact IBM reported last month a $3.1 billion profit for the second quarter. However, the latest cuts were far fewer than the 5,000 or so made earlier in the year.

IBM issues resource action “packets” to affected employees that provides information about who is laid off and who isn’t – minus the names. The data does include ages and job responsibilities. And Rick Clark, a 51-year-old IBMer laid off in January, told the Times Herald-Record that his analysis of the RA pack data showed seniority doesn’t necessarily equal security.

Analyzing the data for the 19,226 Systems & technology Group employees, including 1,213 who were cut, Clark found:

• Some 4 percent of those ages 20-49 were fired.
• Some 8 percent of those ages 50-59 were fired.
• Some 18 percent of those ages 60-69 were fired.

IBM insists it complies with all laws regarding age and other discrimination issues, and Big Blue defends itself strongly if sued. Clark told the newspaper he didn’t plan to sue, but his conclusion:

"If you're over 50, you have a one in five chance — 20 percent — of getting laid off. If you're in your 20s or 30s, you have a 3 percent chance of getting laid off."

By the way, Clark, who says he understands IBM cuts senior workers to say money, plans to become a teacher.

The Skinny

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