International Business Machines Corp. (IBM) Brushes Aside Massive Layoff Rumors from Forbes

International Business Machines Corp. (IBM)

There are several speculations regarding the upcoming strategies of multination companies and International Business Machines Corp. (NYSE:IBM), one of the biggest telecom companies in the world, has brushed off one such so-called strategic step mentioned in Forbes report. Forbes published a report under which, it said that IBM would layoff up to 26 percent of its workforce but the technology company has dismissed these reports.

Robert Cringely, Forbes, released a report stating that the technology company is in line to layoff up to 26 percent of its employees under its recent transformational project, “Project Chrome.” If these rumors are to come true, it would be the biggest corporate layoff in the history with over 1,00,000 layoffs. It is important to consider that International Business Machines Corp. (NYSE:IBM) is constantly involved in the reshaping of its corporate structure with over 400,000 global employees.

International Business Machines Corp. (IBM)

However, the technology company dismissed any such reports in an email to Wall Street Journal saying,

“IBM does not comment on rumors, even ridiculous or baseless ones. If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has already announced the company has just taken a $600 million charge for workforce rebalancing. This equates to several thousand people, a small fraction of what’s been reported.”

It is important to consider that International Business Machines Corp. (NYSE:IBM) has been constantly laying off employees every year in the range of 6,500 to 21,500. It has taken average annual restructuring charges of up to $1.5 billion per year. The tech giant has not disclosed its headcount for 2014 but its workforce dropped from 434,246 at the end of 2012 to 431, 212 at the end of 2013.

International Business Machines Corp. (NYSE:IBM) is not having the best of its days in the past several quarter with losing revenue streaks from the last 11 quarters and the company announced lowered EPS for 2015.

This article has been written by Prakash Pandey.

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