IBM Reportedly (No, definitely) Laying Off Hundreds

Sarasot Herald tribune ^ | 08/18/2003

[Straight Vermonter]

ESSEX JUNCTION, Vt. -- Top computer hardware maker IBM, reeling from a drop-off in business, is laying off hundreds of employees to cut costs, according to media reports Monday.

There was no statement from IBM early Monday. However, two Vermont television stations reported layoffs had already begun at IBM factory spanning the Winooski River in Essex Junction and Williston.

WCAX-TV, citing someone who had been informed he was being laid off, reported that 700 people were losing their jobs in the latest contraction at IBM. WPTZ-TV said "hundreds" had been informed they were losing their jobs during a shift change shortly after 7 a.m.

The job cuts are largely from the company's research and development, manufacturing and management divisions, according to WCAX.

IBM executives and state officials did not immediately return calls for comment. Gov. James Douglas said last week he had no advance notice of developments at IBM, but suggested he was expecting job cuts.

The company directly employs more than 6,000 workers in Vermont, and thousands of others rely on it for contracts and other business. IBM laid off 988 workers at the Essex Junction plant last year as part of a broad restructuring of its microelectronics division, which designs and produces microchips.

[Straight Vermonter]

Its a blood bath. A real sad day here.

[arete]

Have to wait to read more reports on this later. IBM has become incresingly sensitive to reporting layoffs recently. Other sources now have to discover and report on them as IBM's PR and spin machine try to keep painting a rosy picture of the company. Wonder if any of the overseas workers are getting their walking papers as well.

Richard W.

[arete]

Ping

[Sub-Driver]

It's just the chip making side of the business.........they had a losing first half....

[arete]

Yeah, the company is reporting on it now.

"IBM also said it would require about 3,000 executive and support employees to take one unpaid week of leave during the current quarter."

IBM cuts 600 jobs from microchip division

Richard W.

[scottlang]

More jobs lost, and I have yet to see new jobs come. If I do not I think Bush will lose next year. The more people I talk to, friends, members of my church, family, are fearful on the economy and jobs. Some of which have never voted dem are considering it now.

[arete]

Yes, but at least they got a tax cut.

Richard W.

[blam]

"It's just the chip making side of the business.........they had a losing first half...."

Yup. Went through this many times in my 30+ year chip-making career. Got it once myself in 1975.

[Publius6961]

"IBM also said it would require about 3,000 executive and support employees to take one unpaid week of leave during the current quarter."

This is a rational common-sense and relatively painless way to make an instant 2% reduction in annual major costs.

It is mind boggling that the current state of "community" and the prevalence of the "me first" mentality makes it pretty much impossible.

[Publius6961]

are fearful on the economy and jobs. Some of which have never voted dem are considering it now.

Must be some kind of fear that pushes anyone to act irrationally.

Gonna tax themselves into prosperity, are they?

[Gabz]

My husband works for IBM and in his territory they never seem to have enough people to cover the workload. But his manager's hands are tied with some idiotic new fangled system for hiring new people.

I'm tired of the phone ringing in the middle of dinner and them expecting him to drive 150 miles to fix a register in a supermarket that has 15 other working registers.

[Nick Danger]

More jobs lost, and I have yet to see new jobs come.

"The news" is about bad stuff. You will never see a press release announcing that Yoyodyne has hired fifteen people in the last two months. During the dot-com boom you never heard one word about all the outfits hiring ten people a month for a year. As soon as they layed off 50 of the 120, that was in the newspaper.

If you read the newspapers, you'd think that the world consists of nothing but layoffs, plane crashes, murders, and scandals. Apparently there is a big market for "There but for the grace of God" stories, because good news doesn't sell.

You just have to keep it in mind whan you read this stuff that the only time you'll ever hear a journalism major tell you about economic growth is when a liberal politician is taking credit for being the weatherman while the Sun was shining.

[cadillac cowboy]

Not to worry....IBM is hiring in Malaysia, Singapore and India as is the 3M co.

[arete]

True, Wal-Mart hires hundreds a new people every week and you never read a word about it.

Richard W.

[StolarStorm]

More than likely this isn't really a reduction in workforce, but rather a reduction in US based personnel and an increase in Indian and Chinese personnel.

IBM ius simply trying to paint a less than rosy picture (thus the unpaid week) to justify the job shifts.

[Froggie]

Tell me what the Dems would do to create jobs -- like raise taxes? There is only so much an administration can do to effect the economy.

[fortaydoos]

The Bush recovery is coming and we will see 5% growth next year.

[Beck_isright]

"It's just the chip making side of the business.........they had a losing first half...."

It's the auto business too. And soon real estate. Then construction. You can't build a recovery on a mirage. But I'll just be one of those lone voices in the future saying "See, I told you so".

[scottlang]

Nick,

I know too many good people who are still out of work to believe that totally.

[StolarStorm]

Yes, the press is biased. No doubt. However, as many posters on this board can personally attest to, there is indeed a massive problem brewing. We as a party (republican) can ignore it and crash a burn (ala Hoover) or we can step up to the plate and use REPUBLICAN methods to solve the problem. If we don't, the demoncrates will use it in the election and will use socialist methods that will leave us all poorer.

Bush needs to do several things;
1. Enforce existing trade rules that we already have with China and India.
2. Eliminate h1-b and reduce L1 visas.
3. Eliminate subsidies for outsourcing. (OPIC)
4. Reduce government regulatory burden on business.
5. Reduce or eliminate corporate income tax for firms NOT outsourcing.
6. Punish firms enaged in predatory practices (TATA consulting) using offshore labor.
7. Keep 3rd world nations with unequal economies out of WTO.

If we as a party don't do something we will end up with socialized medicine, a weakened defense infrastructure, massive welfare payouts, bankrupt unemployment insurance fund, and the end of America power.