IBM to Lay Off 203 in San Jose Monday
IBM plans to lay off 203 workers in Silicon Valley on Monday, as part of its $1 billion restructuring plan that has already resulted in over 3,000 job cuts. Ironically, the move comes as Big Blue is also gearing up to initiate a one-week forced furlough to many of its U.S. workers affiliated with its hardware operations, as means to avoid layoffs. The upcoming layoffs are specifically hitting IBM's San Jose, Calif., facilities, according to documents IBM filed with the State of California. Although it is not clear from the filing which operations will be affected, Big Blue does operate an IBM Research office and IBM Business Continuity and Resiliency Services offices in San Jose. An IBM spokesman in San Jose did not immediately return phone calls seeking comment. When IBM unveiled its cost cutting restructuring plan in April, it expected most of the cuts would be largely completed by the end of June. Apparently it's dragged on longer. In order to reach $1 billion in costs, the approximate number of layoffs would be as high as 8,000 employees, according to published reports. So the announced layoffs could be only a fraction of those to come. Meanwhile, the forced furloughs are expected to begin either Aug. 24 or Aug. 31, with U.S. hardware workers taking a week off with one-third the pay and executives from that division going without a dime, according to a Bloomberg report.