IBM makes 1,000 job cuts in United States

US computer maker IBM has cut 1,000 jobs in the America.

US computer maker IBM has cut 1,000 jobs in the America.

The company says the lay-offs have been prompted by a slowdown in the microprocessor industry.

IBM will cut jobs at its seven US chip manufacturing and development plants, and at a storage-technology plant in Minnesota.

The company says it aims to reduce the size of its Microelectronics Division by 4.7 per cent to about 20,500 employees, from 21,500 workers.

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IBM employs about 320,000 people worldwide.

The largest share of the cuts will occur at IBM's manufacturing plant in Burlington, Vermont, where some 500 employees - roughly 6 per cent of the plant's 8,300 workers - will be laid off.

Mr Bill O'Leary, director of communications for IBM microelectronics, said: "People will have an opportunity to find other jobs within IBM, and we expect that a number of them will find positions, but reality is in the end we expect about 1,000 people will lose their jobs.

"IBM as a whole is growing in terms of employee population. We expect to end the year up, which is unique these days in high-tech companies," he said.

PA