IBM Cutting Staff By 1%

International Business Machines Corp. (NYSE:IBM), the $126 billion company (worth less than Microsoft, but slightly higher than Google) that is known for consulting both domestic and overseas announced earlier this week that they are laying off roughly 5,000 people (1.3% of total employees).

The layoffs started on Wednesday and continued through Thursday.  But here’s the interesting part.  They are moving a large number of jobs to India.  In India, you could basically pay about $220 per month in salary to an employee and they would live as good as an $80,000 per year salary employee.

The job cuts will not affect the 3,400 IBM employees that work in Washington, also known as those that work in IT for the federal government.  The federal government division of the company is actually growing.

“My understanding is that it isn’t targeting the people who have skills leaning toward federal or local governments,” stated Ben Pring of the Gartner market research firm. “Outsourcing those jobs doesn’t fly in the government context.”  IBM made offers to employees to work in different countries, but would be given equivalent wages.

At one point, IBM was rumored to be acquiring Satyam, the IT company in India that is sometimes considered to be the “Enron” of the subcontinent.  Later it was declared that IBM wasn’t planning to bid on Satyam.  That comes to no surprise because they offered to move their own talent overseas.  IBM didn’t become as rich as they are by writing checks.

[via Washington Post]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

IBM Cutting Staff By 1% Comments

  1. Eliot Bernstein says:

    Perhaps the sell off of stock by top IBM execs and the layoffs are the result of a Trillion dollar lawsuit IBM is named in. Check it out below, wonder if shareholders know, also Intel named. A SEC complaint has been filed against Intel for failure to notify shareholders of liability @


    Investors who have been burned in these scams should start to seek redress from the lawyers who were involved with these scams. I personally have been trying to notify regulators and authorities of a ONE TRILLION DOLLAR scam that is putting states like New York and Florida at huge risk, as well as, companies like Intel, Lockheed, SGI and IBM. The states and companies involved in the fraud fail to acknowledge the risk exposing shareholders and citizens to impending liabilities. Investigators, courts and federal agents ignoring the crimes and evidence, including a car-bombing attempt on my life. I know how Harry Markopolos felt trying to expose Madoff in a world without regulation.

    Did I hear Proskauer Rose is involved in Madoff (involved many clients too) and acted as Allen Stanford’s attorney. Investors who lost money in these scams should start looking at the law firm Proskauer’s assets for recovery. First, Proskauer partner Gregg Mashberg claims Madoff is a financial 9/11 for their clients, if they directed you to Madoff sue them. Then, Proskauer partner Thomas Sjoblom former enforcement dude for SEC and Allen Stanford attorney, declares PARTY IS OVER to Stanford employees and advises them to PRAY, this two days before SEC hearings. Then at hearings, he lies with Holt to SEC saying she only prepared with him but fails to mention Miami meeting at airport hanger. Then Sjoblom resigns after SEC begins investigation and sends note to SEC disaffirming all statements made by him and Proskauer, his butt on fire. If you were burned in Stanford sue Proskauer.

    Proskauer Rose and Foley & Lardner are also in a TRILLION dollar FEDERAL LAWSUIT legally related to a WHISTLEBLOWER CASE also in FEDERAL COURT. Marc S. Dreier, brought in through Raymond A. Joao of Meltzer Lippe after putting 90+ patents of mine in his own name, is also a defendant in the Federal Case.

    The Trillion Dollar suit according to Judge Shira Scheindlin is one of PATENT THEFT, MURDER & A CAR BOMBING. For graphics on the car bombing visit

    The Federal Court cases

    United States Court of Appeals for the Second Circuit Docket 08-4873-cv – Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al. – TRILLION DOLLAR LAWSUIT

    Cases @ US District Court – Southern District NY

    (07cv09599) Anderson v The State of New York, et al. – WHISTLEBLOWER LAWSUIT

    (07cv11196) Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al.

    (07cv11612) Esposito v The State of New York, et al.,

    (08cv00526) Capogrosso v New York State Commission on Judicial Conduct, et al.,

    (08cv02391) McKeown v The State of New York, et al.,

    (08cv02852) Galison v The State of New York, et al.,

    (08cv03305) Carvel v The State of New York, et al., and,

    (08cv4053) Gizella Weisshaus v The State of New York, et al.

    (08cv4438) Suzanne McCormick v The State of New York, et al.

    John L. Petrec-Tolino v. The State of New York –

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