At I.B.M., refocusing yet again; job cuts and spinoffs among the options

Article Abstract:

IBM is again considering various options including workforce cuts and reorganizations, trying to stay competitive as microcomputers continue to erode markets for large computer systems. The inexorable advance of computer technology brings with it powerful and inexpensive machines that render IBM's traditional dominance increasingly difficult to maintain. One possibility for IBM involves spinning off subsidiaries that would act independently, leaving IBM's headquarters to function like a holding company. IBM intends to adhere to its policy of no mandatory layoffs. The company will offer incentives to employees who leave voluntarily. As many as 20,000 will probably leave during 1991, and 5,000 or 10,000 more will probably leave in 1992. This is the fourth major reorganization effort by IBM in five years. Even so, some critics say IBM's efforts so far are not enough.

Bureaucracy, Divestiture, Divestment, Outlook, Personnel Management, Organization Structure, Reorganization, Decentralization

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I.B.M. to disclose details of new strategy

Article Abstract:

IBM will reveal its restructuring plans slowly during the remaining weeks of 1991. Company spokespersons described a plan to grant autonomy to IBM's San Jose disk drive plant and to stimulate growth through the freeing of several business units. The company also announced a 20,000 worker reduction for 1992, which required a $3 billion charge in the fourth quarter. IBM currently controls 78 percent of the high-end disk-drive market. IBM's tenacious re-structuring comes at a time when the company is involved with several contract negotiations with Apple Computer Corp and Sun Microsystems Inc. Carl Conti, head of mainframe business, will retire at the end of 1991. George Conrades, a senior vice president and head of IBM's US operations, has been demoted, observers say.

Planning, Appointments, resignations and dismissals, Employee selection, Growth (Physiology), Retirement, Financial Analysis Software, Growth, Executive, Strategic Planning, Employee Relations, Hiring, Work Force Reduction, Conrades, George H., Conti, Carl J.

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