Report: IBM cutting more jobs, shifting work to India


International Business Machines Corp. (IBM) is planning to cut a “large number” of U.S. employees in its business services division and transfer their duties to India, the Wall Street Journal reported on Wednesday.

The reported cutbacks in the U.S. would be the latest round in a series of job cuts made by IBM this year as the global economic recession continues.

According to the newspaper, it could not be determined how people are losing their jobs; IBM generally doesn’t publicly discuss layoffs, and the company has declined to comment.

The Journal said IBM had 398,500 workers worldwide at the end of 2008 and 115,000 in the United States, down from 121,000 at the end of 2007.

The computer giant has offered to relocate some of the employees affected by the earlier reductions to India, Brazil, China and other lower-wage countries. However, workers who want to move abroad must be “willing to work on local terms and conditions,” IBM said early last month.

Update: Reuters reports that the cuts will affect 5,000 people.