Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The number of employees working for the information technology company International Business Machines Corp. has declined for the first time in ten years due to the fact that the company, which is currently known as the largest computer-services provider in the world, has cut its costs in order to meet its income goals.

According to a official filing, 431,212 employees worked for International Business Machines Corp. at the end of last year. These figures are said to be 0.7% less than the number of employees who worked there in 2012.

One billion dollars were spent by the company in 2013 for labour force restructuring. The same move is planned by the company over the current quarter of the year.

The company made an announcement on Monday this week that 3,100 high-tech jobs are planned to be kept by it in the north part of New York. It also revealed that about 500 new jobs are planned to be added in Buffalo. International Business Machines remains devoted to high-tech jobs at plants for semiconductors situated in Albany, Yorktown Heights and Dutchess County, which is proven by the pact between the company and the State University of College of Nanoscale Science and Engineering in New York.

The office of the Governor of New York – Andrew Cuomo – revealed that IT staff will be trained and educated there, and the place will be used to develop high-tech software for genomics, energy efficiency development, molecular research, etc. Five hundred information technology jobs are to be created by the company in Buffalo as one of the main clauses in the deal, which was announced on Monday.

Alliance@IBM, which is an employee group, reported that the layoffs in Asia, Europe and South America have already begun, and the workers of the company in the U.S. and Canada are expected to get notification about the process today. Almost 700 jobs in Dutchess County were cut by International Business Machines Corp. in 2013 from the total number of 7,000.

International Business Machines target is 20 dollars per share in adjusted earnings by 2015. However, the seven straight quarters of decreasing revenue made such a goal difficult to reach. Employees have been dismissed and furloughed by the company under the lead of Chief Executive Officer Mrs. Ginni Rometty. Other measures taken by the company in its attempt to meet goals are: assets selling, cutting tax rate and shares buy-backs.

The company did not immediately respond to a request for comment. Later, International Business Machines Corp.s spokesman Doug Shelton refused to make any comments on the number of job cuts that are planned by the company, as well as on their timing.

International Business Machines Corp.s shares fell by 0.12% on Tuesday to settle at $183.23 in New York, marking a one-year change of -7.99% and market capitalization of $190.8 billion. According to CNN Money, the 22 analysts offering 12-month price forecasts for International Business Machines Corp. have a median target of $190.00, with a high estimate of $235.00 and a low estimate of $160.00. The median estimate represents a +3.69% increase from the last close.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Commodity Market: Gold heads for best week since March ahead of US Non-Farm Payrolls dataCommodity Market: Gold heads for best week since March ahead of US Non-Farm Payrolls data Spot Gold traded little changed on Friday ahead of the highly anticipated US employment data that could offer insight into labor market conditions.Still, the yellow metal was poised to register its best weekly performance since March, […]
  • Natural gas trading outlook: futures extend gains on warmer weatherNatural gas trading outlook: futures extend gains on warmer weather Natural gas rose for a third day on Monday amid forecasts for very warm weather across the US, including the countrys typically cooler north-eastern regions.Natural gas for delivery in August traded 1.62% higher at $2.815 per million […]
  • Nissan Motor Co Ltd share price up, posts better-than-expected profit as U.S. sales flourishNissan Motor Co Ltd share price up, posts better-than-expected profit as U.S. sales flourish Nissan Motor Co Ltd stated an increase in Q2 profit and overtook analysts expectations amid record sales in the United States which made up for slowing operations in China.Nissan reported a slight increase in operating profit of ¥139.34 […]
  • Forex Market: EUR/USD daily trading outlookForex Market: EUR/USD daily trading outlook Yesterdays trade saw EUR/USD within the range of 1.1446-1.1299. The pair tumbled 1.05% for the day to close at 1.1324 after it settled last week 2.2% higher, a fifth straight weekly increase.At 07:01 GMT today EUR/USD was down 0.41% for […]
  • Forex Market: GBP/CAD daily forecastForex Market: GBP/CAD daily forecast During yesterday’s trading session GBP/CAD traded within the range of 1.8243-1.8311 and closed at 1.8270. At 6:53 GMT today GBP/CAD was losing 0.12% for the day to trade at 1.8252. The pair touched a daily low at 1.8249 at 5:00 […]
  • EUR/USD on negative territoryEUR/USD on negative territory The euro retreated against the US dollar on Tuesday, because of concerns over a possible military action by the United States against Syrian government, which supported demand for the greenback.EUR/USD fell to a session low at 1.3355 at […]