IBM expands '92 forecast of staffing cuts to 32,000; employees rushing to take severance offer; charges put at up to $1 billion
Article Abstract:
IBM is cutting its work force by at least 32,000 employees during 1992, a number that is 12,000 more than previously expected. The total staff cuts amount to nine percent of the company. IBM will take charges totaling between $900 million and $1 billion. The largest impact will be felt in the 3rd qtr. IBM expects about two-third of its work force reduction to take place in the US. Industry analysts believe that the company may cut 40,000 jobs or more by the end of the year. In the US, IBM has hoped its employees would opt for the Individual Transition Option, which offers severance pay of two weeks' salary for every year of service plus extensions on medical and other benefits.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
IBM opens a European unit to sell low-priced PC clones made in Asia
Article Abstract:
IBM's Individual Computer Products International Ltd (ICPI) subsidiary will sell low-priced microcomputers manufactured by companies in Taiwan, Singapore, Malaysia, Germany and the United Kingdom. The European subsidiary will sell the Ambra line of low-end computers without direct involvement by IBM. The computer giant and its subsidiary will maintain a hands-off relationship to avoid tarnishing IBM's image as a premium-brand vendor. Analysts say that retailers are likely to push the IBM connection despite the firms wishes, and many believe that the situation could hurt sales of IBM's PS/1 home computer.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Competition pushes computer rivals to form unlikely, uneasy alliances
- Abstracts: LSI Logic says 12 computer firms use its chips to build Sun clones. Readin', writin' & multimedia: slowly, teachers are turning to a new tool
- Abstracts: AT&T bid to buy NCR is complicated by the recent surge of computer stocks. part 2 AT&T says 70% of NCR holders back meeting if resistance to bid continues
- Abstracts: IBM pension plan changes are expected to entice thousands of workers to retire. part 2 IBM's use of two firms to recruit a CEO is double trouble for other companies
- Abstracts: AT&T plans to name Tobias to direct overseas lines in bid to speed growth. part 2 Hackers open voice-mail door to others' phone lines