IBM will raise number of jobs it plans to trim; proposal expected Monday to cut 7,000 jobs in '93 in North America sales
Article Abstract:
IBM increases the number of employees it plans to lay off from its North American sales operations in 1993 from about 5,000 to about 7,000. In Dec 1993, when workforce reductions for the 1993 were announced, IBM executives said they would not impose deeper cut unless business conditions worsened. But now some observers say IBM will reduce its workforce in 1993 far more than expected. For example, Merrill Lynch analyst Dan Mandresh expects IBM to cut 40,000 jobs worldwide, 15,000 more than the firm originally announced. In early 1992, IBM announced plans to cut 20,000 jobs, but by year's end, it had cut more than 40,000, leaving it with a bit more than 300,000 workers worldwide. IBM took a $6 billion charge in 4th qtr 1992 to cover its planned 1993 cutbacks.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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IBM's use of two firms to recruit a CEO is double trouble for other companies
Article Abstract:
IBM's decision to hire two rival executive-search companies to help it find a new chief executive may end a long-standing US business practice. The rules of the Assn of Executive Recruiter Consultants calls for a executive-search company that gets a contract with a firm to regard that firm's executives as off-limits for two years. For years, many US firms have employed different executive searchers in order to get on as many off-limits lists as possible. IBM's decision to hire two executive-search companies, SpencerStuart and Heldrick and Struggles Inc, means that one can recruit executives from a firm that is off-limits to the other. Companies are now worrying that IBM's new strategy will make it easier for their own executives to be recruited away.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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