I.B.M. facing more decisions on cutbacks
Article Abstract:
IBM will reportedly take about a $2 billion charge against 2nd qtr 1993 earnings to pay for the cost of cutting 50,000 or more workers from its payroll. The charge will force IBM's board of directors, scheduled to meet Jul 27, 1993, to decide whether or not to cut the company's dividend again. In 1992, IBM cut its annual dividend from $4.84 to $2.16. The current work force reduction was announced before Louis V. Gerstner Jr took over as CEO in Apr 1993 and was given millions of dollars in salary and benefits. Gerstner is expected to announce more work force reductions, factory closings and office consolidations. Some analysts expect IBM will have only about 230,000 workers by the end of 1993, down from 300,000 at the end of 1992.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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Voluntary I.B.M. layoffs up; $1.2 billion charge is seen
Article Abstract:
IBM announces that voluntary job cuts will reduce the company's work force by 32,000 employees in 1992. The company had previously indicated expectations of a work force reduction totalling 20,000 workers. The job cuts will require a $1.2 billion charge against earnings for 1992, but should help IBM lower expenses in 1993. The company took a $3 billion charge in mid-1992 in order to accommodate the job cuts. Savings from the work force reduction are estimated to be $900 million a year. The popularity of the voluntary job cut program is a result of IBM's generous offerings to employees and a reflection of the employees' awareness that this may be the last opportunity to collect substantial severance pay from IBM.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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Job cuts by I.B.M. may rise: well beyond 25,000, many analysts say
Article Abstract:
Industry observers say IBM will reduce its work force by more than the 25,000 people that had previously been announced, but an IBM spokesman denies that broader cuts are being considered. Daniel Mandresh, an analyst with Merrill Lynch & Co, says he expects IBM to eliminate as many as 40,000 jobs during 1993. He says that the cutbacks could necessitate a special charge against earnings of $1 billion. Other analysts agree that additional cuts are planned. Until now, IBM has held to its traditional no-layoff policy, reducing its work force from 407,000 in 1986 to 300,000 at the end of 1992, arranging early-retirement packages. The company now says it may have to abandon its no-layoff policy.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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