IBM to Cut U.S. Jobs, Expand in India
IBM has held up great in this downturn in the market. This notwithstanding, tomorrow I am going to sell my law firm's holdings of IBM in our 401(k). I am not trying to wrap myself in the American flag, but neither do I desire to participate in any gains that may result from the 5,000 pink slips going out to American workers who are going to be replaced by Indian workers. Damn, and talk about timing.
The above is notwithstanding my family's long relationship with IBM. My readers probably remember that my father-in-law -- a person I loved like a father and admired greatly and whom I would have named my son for had I had one -- attended the Naval Academy, was a Navy pilot taking off from and landing on carriers, and after a distinguished Navy career, retired from the Navy as a Captain. (The rank of captain in the Army, Marines and Air Force is well below that of a captain in the Navy.)
But what I have never posted on this blog is that after retiring from the U.S. Navy he went on to enjoy a long and successful career with IBM, reaching the rank of Vice President before reaching IBM's mandatory retirement age.
From The Wall Street Journal:
International Business Machines Corp. plans to lay off about 5,000 U.S. employees, with many of the jobs being transferred to India, according to people familiar with the situation.
The technology giant has been steadily building its work force in India and other locations while reducing the number of workers based in the U.S. Foreign workers accounted for 71% of Big Blue's nearly 400,000 employees at the start of the year, up from about 65% in 2006.
Earlier this year, IBM also told employees that if they wanted to move to an emerging market, they could apply for jobs there with IBM, but they would be paid in local wages. A spokesman Wednesday said "dozens" of people have taken the offer, usually natives of those countries.
Outsourcing to India has long been a hot-button topic for IT employees in the U.S. As U.S. employers have shed millions of jobs in recent months, workers and politicians have stepped up their criticisms of the practice with little impact.
"When IBM workers see jobs being shifted offshore, it's like stabbing them in the back," said Lee Conrad, a former IBM worker who is an organizer for the Communication Workers of America, which is trying to unionize IBM.