Business & Tech

IBM Lays Off Thousands, Hudson Valley Hit

IBM is slashing its workforce around the world, according to media and employee reports. 

"IBM’s decision to drop the ax on hundreds of employees — 697 in Dutchess County alone — was part of a global cutback based on a shortfall in first-quarter results," wrote reporter Roberto Cruz in the Poughkeepsie Journal. 

The news infuriated NY State Senator Greg Ball (R-Putnam) who said he had been raising alarms about IBM's poor corporate citizenship since 2009.

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Media reports said IBM issued a statement that did not talk about the cuts, rather citing change as a constant in the technology industry. 

Alliance@IBM, website of the IBM Employees' Union, is keeping a running tally of the layoffs, department by department. They totalled 2,286 as of the morning of June 13.

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WRAL TechWire quotes an analyst speculating that up to 8,000 jobs will go overall.  

“This simply confirms what we have know about IBM’s tendency to accept taxpayer dollars, lay folks off and shift responsibility,” Ball said in a press statement. “We’ve asked Governor Cuomo to get solid commitments from IBM in writing, in return for taxpayer subsidies, yet he has refused to do so. If anyone needs a case study in poorly managed corporate welfare, in a state set to unveil billions more, this is it.”

According to Ball, he demanded in 2009 an investigation into IBM’s offshore practices after they received over $100 million from New York State. In December of 2008, IBM also accepted $45 million from the Empire State Development Corporation in return for not cutting jobs at its East Fishkill facility. Just two weeks later, the company laid off 274 workers.

In 2011 Ball said he again raised questions after Governor Cuomo announced plans to give $400 million in taxpayer incentives to IBM, a company known for outsourcing, with no strings attached. 

Ball's attitude is a symbol of how much IBM has changed in 50 years. Business Week's analysis of IBM in 1996, "IBM: History but No Lesson," included this statement: 

"For employees, IBM's job security was legendary. It wasn't unusual to find two generations of the same family represented. There were never any layoffs or unions. And this loyalty to employees buttressed the promise to customers: A happy and motivated workforce meant good service."


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