The business day started with a good news about the new home sales, but the news about the IBM Layoffs in 2009 helped to bring down the stocks. IBM job cuts will begin tomorrow in the services industry.
The word is that IBM is moving those jobs to India. While it's sad the 2009 job cuts at IBM are understandable in this bad economy. India and China job markets are cheap and they will gain from IBM layoffs.
I could not determine from IBM's website how many people will be affected from the 2009 layoffs, but according to WSJ IBM will make 5000 job cuts starting tomorrow. Many people will feel very nervous about this.
IBM did pretty well last quarter, but the planned cuts show that even companies that are successfully navigating the global recession are continuing to slash costs, writes WSJ.
I actually was a little frustrated to see IBM having no comment on its website. The company cuts jobs and the layoffs of which affect 5000 people and not comment? Perhaps the comments will be well phrased and will appear tomorrow.
IBM shows a 12% gain in 4Q earnings yet is set for a second round of layoffs? Outsourcing jobs to India. Doesn't seem right, does it? Let's see what the company will say tomorrow.
In regard to today's market IBM fell 35 cents to 97.95 on reports the company will begin a new round of job cuts tomorrow.
After trading in a range between minus-109 and plus-203, the Dow closed up 89.84 points at 7749.81. NYSE volume totaled about 1.77 billion shares. The S&P 500 was up 7.63 points. The Nasdaq gained 12.4. Advancing issues beat decliners by more than 2-1 on both the NYSE and the Nasdaq. The 10-year Treasury note was down 21/32 to yield 2.78%.
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#1 ibm layoffs in 2009
the 5000 being laid off tomorrow are not the first in 2009. these are the services layoff. there were 4500 layoffs in software group in february.