Hardware Jobs in Jeopardy at IBM

Look for more staff cuts at IBM – especially in hardware – after the company’s quarterly earnings fell below analysts’ estimates. Big Blue reported fourth-quarter revenue of $27.7 billion, while Wall Street had expected the number to be more like $28.25 billion.

IBM LogoThough revenues were slightly off at the technology services and business services groups, IBM’s hardware business dropped 3.5 percentage points to 35.6 percent, continuing the decline of the unit. Now word’s come that the company’s worked a deal to sell its  low-end server business to Lenovo, the Chinese company that bought its personal computer business in 2005.

In August, the company forced U.S. hardware employees to take an unpaid one-week furlough.

IBM has been racing to embrace cloud computing and last week announced plans to invest $1.2 billion this year alone to build a global network of data centers. It also recently made its Jeopardy-winning Watson AI technology its own business unit focused on commercialization.

Though Big Blue has been slashing its workforce in North America in recent years, it’s expected to hire hundreds for a new design studio in Austin, Texas. It also expanded its services business in Baton Rouge, La., where it plans extensive hiring, as well.

Comments

  1. BY Fred Bosick says:

    The true indicator of IBM’s intentions is to examine how many, if any, will be laid off in India ad China. That info will not be available.

  2. BY oracle says:

    Rather they should be prepared to move to China who have become the largest exporter for computer equipment in the world.

  3. BY johngalt2000 says:

    > Hardware Jobs in Jeopardy at IBM…

    You don’t have to qualify that statement with the word “hardware”. If you’re working at IBM, *especially* if you’re working at IBM in the USA, your job is going away. Perhaps not this quarter or the next one, but sooner than you expect. IBM needs to die NOW and save everyone the grief.

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