IBM IS to begin consultations with staff today on a series of voluntary redundancies that could see up to 200 staff depart the company.
An IBM spokesman confirmed that the technology giant will begin briefing staff this morning, but said he could not comment on how many jobs would be lost as a result.
The move comes as IBM completes the transfer of its high-end server manufacturing from its Dublin Technology Campus to Singapore. Although not specifically targeting those workers, the package is likely to appeal to staff in the hardware unit. IBM’s Dublin operations have shifted focus in the last five years from manufacturing to software and services.
Last month, IBM said it would create 200 jobs at its Mulhuddart site over the next three years with the establishment of a €66 million technology centre focused on the needs of cities in the future.
Both that project and a €25 million expansion of its software labs in Dublin, Cork and Galway last year creating 100 jobs, have received the backing of IDA Ireland.
In February 2009 IBM announced it was seeking 120 voluntary redundancies following the decision that its high-end server manufacturing would move to Singapore. This was because the growth markets for these products is in Asia.
The move of those production lines to Singapore has now been completed. Low-end and mid-range server manufacturing and fulfilment for markets in
Although workers from the manufacturing side of the business will have the option to transfer to the new software and services businesses, many of them may not have the required skills. The IBM spokesman pointed out that the company is continuing to hire for roles in sales and software development. The move to seek voluntary redundancies will not have any impact on IBM’s net total workforce in Ireland, which stands at about 3,400.
On Monday night IBM reported better than expected first quarter results and raised its guidance on its full year figures. The latest company whose financial results point to a recovery in the technology sector, IBM said customers had increased spending on software and consulting services.
IBM’s first-quarter profit rose to $2.6 billion (€1.94 billion), or $1.97 per share, compared to $2.3 billion, or $1.70 per share, for the same period in 2009. Revenue rose 5 per cent to $22.9 billion from $21.7 billion, accelerating from a 1 per cent year-on-year gain in the previous quarter. Wall Street had forecast revenue of $22.7 billion. The company raised its 2010 earnings per share target to “at least $11.20” from a previous outlook of “at least $11”. – (Additional reporting, Reuters)
