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.