IBM rumored to slash Europe
IBM is rumored to be planning to cut 15,000 jobs across Europe. Here's a piece that Forbes.Com is running this morning that quotes a story from the Financial Mail in London. How's that for weak sourcing. Basically, one reporter has one source saying this, though this type of move has been widely rumored since the last earnings report.
LONDON (AFX) - International Business Machines Corp is to cut 15,000 jobs throughout Europe next month as part of a companywide reorganisation, The Financial Mail on Sunday reported, citing IBM insiders.
The newspaper said the job losses, most of which will hit Britain, are in response to mounting shareholder pressure over rising costs and a sharply falling share price.
IBM's global services division will be the most severely affected unit. It runs implementation projects and consulting services.
According to insiders, the company is also to dismantle its European, Middle East and Africa corporate structure, a move that will take its toll on hundreds of IBM regional managers, the article added.
Earlier this month, IBM announced 580 job losses in Germany. The German weekly magazine WirtschaftsWoche said IBM may cut up to a total of 2,500 jobs in Europe as it revamps its European operations.