1 - 15 August, 2003

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IBM Inc. to Lay Off 8,000 Workers

IBM is about to lay off 8,000 of its employees, meaning 2.5% of its worldwide staff, as the leading computer maker battles a slump in technology spending, the Wall Street Journal reported in its online edition.

Citing a person familiar with the situation, the paper said number one computer maker IBM could make the lay-offs from among its 318,000 employees during the current quarter. The cuts would not be across the board, rather certain specific activities could be targeted.

IBM has seen its growth slow in recent quarters as the broad decline in capital spending because of the lingering economic downturn hit revenues and profits. In early April, the company reported its worst quarterly decline in earnings since it emerged from a string of losses in 1993. The Journal said the staff reduction coming this quarter would be the widest at the company since the early 1990s.

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