IBM has lost a major IT outsourcing contract, a move that could yield even more layoffs at the company’s Research Triangle Park location, sources close to the situation told WRALtechwire Tuesday afternoon.
In 2005, IBM signed a $730 million, seven-year deal to update technological infrastructure and update and support software for The Walt Disney Co., including its theme parks and resort businesses.
In six years, IBM made an average of about $120 million per year working on Disney projects, sources said.
When that deal came up for renewal, Disney decided instead to contract with HCL America, sources said.
Lee Conrad, coordinator of employee group Alliance @ IBM, said, “It doesn’t sound like things are going good in ‘Big Blue Land.’ Unfortunately workers will probably lose their jobs over this.”
Both IBM and HCL America declined to comment, and terms of the deal have not been disclosed.
In a process that company leaders call “rebalancing,” IBM has cut jobs across 19 work groups in recent weeks. Where the layoffs are occurring geographically wasn’t specified. IBM employs about 10,000 people in North Carolina.