IBM employee axe cuts away 1,300 staff

[OhioChick]

Source: ZDNET

June 13, 2013 -- 09:31 GMT

Following reports that IBM planned to axe U.S. employees, employee group Alliance@IBM says at least 1,300 have been issued a pink slip.

International Business Machines Corp. has fired a minimum of 1,300 employees in a round of U.S. job cuts, according to Bloomberg. Employee group Alliance@IBM says that at least 222 people in marketing have been given their marching orders, as well as 165 in semiconductor research.

Lee Conrad, a coordinator for Alliance@IBM, said that "just about every division at every location is being impacted." On the IBM Employee's Union website, a number of axed employees have chimed in, expressing disappointment in the layoffs and annoyance that "While they are firing in U.S., they are hiring in India."

One poster from Austin said, "More than 30 percent cut in (GBPSAS) Global Business Partner Systems/Application Services (Austin). Her Director was told to go to commercial account. 35 percent cut in IBM Systems & Technology Group, Enterprise Systems & Technology Development eServer CEC Bringup and Integration (Austin). 40 percent cut in GFW IBM (Austin)."

Read more: http://www.zdnet.com/ibm-employee-axe-cuts-away-1300-staff-7000016785/

[reformist2]

1. And who wants to bet the ages of everyone fired will be from 54-64?

I hear IBM offers nice pensions, that is, if you can make it to retirement...

[sinkingfeeling]

4. No, IBM ended pensions in 1999. Only those who got out before

the 'conversion to defined-contribution (401K) plans' have pensions.

[reformist2]

5. Ah, the 401K, the "pension" that's really just a savings account.

I actually didn't know that. So thanks for the correction!

[sinkingfeeling]

6. You're welcome. I retired (with a pension) in 2003. But the corporation

made changes to the calculations in 1991 and 1994 that reduced what I get by about 20% of what I was promised.

[DesertFlower]

17. they do contribute 10% of your salary

to the 401k.

[sinkingfeeling]

20. Only if you're still employed by them on Dec. 31 of each year.

[DesertFlower]

21. it went into my husband's paycheck

twice a month. really made it grow inasmuch as we were putting the max of $21,000 a year in.

[sgsmith]

22. Used to, not now.

In 2012, IBM decided to change how they paid out matching 401(k) funds. Used to be, an employees account would be credited per pay period (ie twice a month). Now, they've changed to an end of year employment status (Dec. 14) for an end of year (Dec. 31) matching payment. If you've left IBM for any reason other than retirement before Dec 15, the company will not pay any matching 401(k) money.

So, if you're a part of the RA, bye-bye 2013 401(k) money. If they sold your work division to another company, bye-bye 401(k). I'm not sure, but if you were on leave of absence on Dec 14, bye-bye 401(k). Probably the same for other short term disability programs like maternity leave.

IBM really put the knife to their current employees with the 401(K) match decision.

[DesertFlower]

24. when we found out my husband was terminal in 4/12

we got him retired. one of the reasons was if he died before he was retired i would get 50% of his pension. you could only make the decision for your spouse to get more when you retired. because he had a brain tumor it all had to be done with my power of attorney. i also got his full 401k. his last paycheck was 4/30/12.

[antigop]

23. IBM changed the plan...you now have to be employed until Dec. 15 to get the match

http://www.forbes.com/sites/edwardsiedle/2012/12/18/ibm-leader-in-gutting-401ks/

Recently IBM, often considered a trendsetter for employee benefits, notified workers that starting next year it is changing the timing of the IBM match and automatic contribution from semi-monthly to an annual lump-sum contribution at the end of the year. IBM noted that “the percentage of the IBM match and automatic contribution workers receive – which makes IBM’s 401(k) plans among the best in the industry – is not changing.”

http://business.time.com/2012/12/13/why-your-401k-match-will-get-cut/

Beginning next year, IBM will delay 401(k) matching contributions until Dec. 31. On that date, it will deposit a lump sum in the account of those who were in the plan and working at the company as of Dec. 15. Workers leaving the company before that date will get no match, including any workers who may have been fired, say, on Dec. 14. The one exception is for those who formally retire. They will get a full match.

[DainBramaged]

2. "While they are firing in U.S., they are hiring in India."

Of course, why pay a living wage here when you can pay peanuts there

[Botany]

9. Welcome to IBM in Bhopal

http://www.ibm.com/connect/ibm/in/en/branch/madhyapradesh/bhopal/

[Sunlei]

3. 222 people in marketing. Sales rep/'sales calls' jobs go extinct.

[DesertFlower]

7. my husband was with IBM for almost 43 years until

he passed last year. the bean counters were trying to get rid of him for years, but couldn't because he had a special skill. every time they tried management spoke up and said "we need this guy". we saw the changes in IBM over the years -- the benefits changed -- raises became almost non-existent unless you were a top performer and even then it was only 1 or 1/4%. fortunately because of his years of service he was under the old pension plan, which i am now collecting.

[markiv]

8. they're laying off because of a desperate shortage of workers

that's why we must increase h-1b visas

[Baitball Blogger]

10. +1

[antigop]

13. +1000. nt

[ChromeFoundry]

15. I am certain that will be the headline tomorrow. n/t

[SummerSnow]

11. If you go to IBM India website...

They currently have 521 job openings at IBM in India...smh

[antigop]

12. "outsourcing will continue"....DLC/Third Way Hillary said so.

http://www.washingtonpost.com/wp-dyn/content/article/2007/09/07/AR2007090702780.html

When Sen. Hillary Rodham Clinton flew to New Delhi to meet with Indian business leaders in 2005, she offered a blunt assessment of the loss of American jobs across the Pacific. "There is no way to legislate against reality," she declared. "Outsourcing will continue. . . . We are not against all outsourcing; we are not in favor of putting up fences."

So which outsourcing IS she against? And who is "we"? The DLC/Third Way/Corporate Dems?

[davidwparker]

14. This was the reason I supported O, for all the good that has done. n/t

[aggiesal]

16. Here come the H-1B's n/t

[Initech]

18. And how much is the CEO of IBM making this quarter?

[zeeland]

19. I've known several people in Tucson

and Mn. that worked for IBM going back to the 70's. Each one of them lived in constant fear of losing
their jobs. I don't know what the culture is there, but it's no way to live.

[antigop]

25. Ex-CEO Palmisano --- retirement package

http://www.cnbc.com/id/100565278

Samuel Palmisano retired in December as the chairman of IBM, but that's not stopping the company from paying more than $1 million to set him up with a new office and company cars.

In an IBM proxy statement dated March 11, the company said it spent $1,033,138 for "personal use of Company autos, retirement items, office payments and administrative support, including space renovation" for the former CEO.

Office space renovation? Yep.

Turns out, IBM treats former executives extremely well. Company spokesman Edward Barbini said the funds were spent to "establish an office for a former CEO off of the IBM campus." He would not say where the office is located or why it cost about a million dollars to staff and renovate. "I have nothing further to say on it," Barbini said.