When Indian Tech companies are hiring a large number of candidates, several MNCs in India are repatriating employees into other divisions or letting go of them in sizable numbers.
IBMs cost-cutting plans, “resource actions”, reached Indian shores this week and at least a few hundred job cuts are warn of by insiders at the Big Blue’s unit. The company has already asked about 40 employees at its Systems Technology Group to resign, as per the sources. STG is well-known as IBM’s hardware division.
IBM is said to have more than 100,000 staff in India which is the largest presence of the giant outside the US. According to the Chief Financial Officer of IBM, Martin Schroeter – the hardware business, which includes mainframes, storage and servers, was facing some difficulties and would see few job cuts.
Sources in the company said that IBM had been qualified for a large job cut in April last year but the dismissals were not effected and staff was told that they wouldn’t receive any hikes in salaries till December 2013. The employees at STG who were asked to leave were also asked to return laptops within two hours, said a post.
But this was shocking that they were asked to surrender their official laptops within 2 hours and leave. The employees were told STG business has been suffering from huge financial woes and several middle level executives have resigned in the last few weeks. Last month a news also broke that the company agreed to sell its low-end server business against $2.3 billion to Lenovo.
IBM reported a 5% fall in revenue in the December quarter and the company also plans up to 15,000 cuts worldwide in the first quarter. This is of course a bad news for the employees in IBM as it’s very difficult to find and get a good job.