IBM pension plan changes are expected to entice thousands of workers to retire
Article Abstract:
IBM changed its pension and early retirement program at its US facilities in an attempt to reduce its work force to a manageable level as part of its cost-cutting measures. The number one computer maker has already succeeded in trimming 37,000 employees between 1985 to 1990 but still has 205,000 employees in the US in 1991. IBM did not publicly announce its new early retirement initiatives but officials at the company acknowledged that they need to pursue employee cuts more aggressively. The new severance program did not and will not affect IBM's earnings in any quarter because it costs can be taken from the company's pension fund, which is already $7 billion greater than required to cover obligations. The new regulation means that workers with 30 years of service can take early retirement with full pension without having to be 60 years old.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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IBM is expected to unveil a new job-reduction plan; some 10,000 could be cut; industry executives see company acting today
Article Abstract:
IBM intends to reduce its work force by as many as 10,000 employees. The move coincides with a move to divest the company's laser printer, typewriter, and office products business. The plan is designed for employees who wish to take early retirement, and also provides incentives for those of non-retirement age who wish to resign. Unlike previous IBM work force reduction schemes that were limited to the US, this one is intended to include world-wide operations. IBM has already reduced its work force from 404,000 in 1986 to 374,000 at the end of 1990. Four thousand of the reductions will come from the sale of the product lines.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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IBM launches retirement plan to cut outlays
Article Abstract:
IBM implements an early retirement program that will reduce its work force by as many as 1,000 employees. The offer was made to 23,000 employees at four different manufacturing sites and will be expanded to other manufacturing sites in the coming months. The employees were offered one week of severance pay for each six months with the company, with one year's severance pay as the upper limit. Similar, though more generous, offers over the past three years have reduced IBM's work force by 21,500. The present early retirement program was initiated in response to less-than-expected earnings for 1989.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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