IBM lays off 15,000, HP 1300

[ixion]

Veteran IBM-watchers know how testing it is to read one of the company's financial statements. In the early days of the cold war, Churchill described the Soviet Union as "a riddle wrapped in a mystery inside an enigma". But compared to earnings releases from companies such as Apple and Sun - who provide terse and lucid declarations - you can be forgiven for thinking of IBM's announcements as a cloud wrapped in a fog containing a temporary heat-haze.

However, this much is clear: IBM has shed 15,000 jobs in the past quarter: 1400 from the microelectronics division and a staggering "14,213 Global Services personnel" in response to "the recent decline in corporate spending on technology-related services". To balance the books, IBM also bunged its recent acquisition, PwC, almost $400 million.

In an SEC filing posted last week, IBM maintained that demand was strong. So strong, it had to conduct a private pogrom in its own services division. Clearly, something doesn't add up - even by IBM's own admission.

Perhaps an email from a soon-to-be redundant HP employee to The Register sheds some light on the situation. HP announced earnings this week that fell below expectations and added that it would make 1,300 "unexpected" human sacrifices to cover the shortfall. In contrast to previous "sheddings" of fluff in the "labor market", the middle class now feels the pain.



Ah yes, the joys of a job-loss recovery. Maybe the middle class will wake up and get the Bush cabal out of the WH before we're all paupers.

http://www.theregister.co.uk/content/7/32445.html

[SharonAnn]

1. This fits with them hiring off-shore workers for SW development

and other "Global SErvices" activities.

[gratuitous]

2. Golly, what about the tax cut?

Weren't these big businesses just supposed to be creatin' jobs left and right? I wonder what they did with that tax cut money? You don't think they just pocketed it, do you? That's not what Lil George told them to do with it, you know! I'm sure he'll get right on this, as soon as his month-long paid vacation (his third in 2½ years) is over.

[Atlant]

3. HP is *ADDING* 1300 to an expected 3500...

> HP announced earnings this week that fell below expectations and
> added that it would make 1,300 "unexpected" human sacrifices to
> cover the shortfall.

Note that HP is ADDING 1300 to the 3500 they were already
planning to lose in the near future.

http://zdnet.com.com/2100-1103_2-5065715.html

(way down deep in the story)

My own company did "as many as 500" yesterday out of about 6,000 or so.

Atlant

[bluestateguy]

4. Another lost 18,000 lost votes for Bush

Unemployed voters tend to be mean to incumbents come election time.

[ikojo]

9. Tech workers may still vote Repuke

Just because a tech worker (or any worker) loses his/her job does not mean they automatically switch political alliances. Many tech workers are libertarians at heart and hold no grudge against a company for laying them off. When Worldcomm in St Louis closed and laid off a bunch of people the corporate media interviewed a couple workers and one of them said, "well the company needs to do what is best for business."

When American Airlines laid off a bunch of St Louis employees recently one of them was interviewed on the corporate news and she said that she saw it as an "opportunity" to begin a new career (she is in her 50s and had only worked at Ozark/TWA/American).

Until workers, of all income levels (anyone who depends upon a paycheck to survive is a worker), view themselves as a distinct class no amount of job losses, particularly among the well educated "white collar" crowd will really harm the Repukes.

[wryter2000]

5. And DHL just acquired Airborne

There'll be "consolidation" there, no doubt.

:P

[SpiralHawk]

6. Ouch - that hurts. Meanwhile, back at the Pig Farm in Crawford

the eConoMist-in-cheef* has gone into seclusion to count the Bush family fortune, and admire his accountant's latest Profit Projections for the BFEE, Halliburton and Carlyle.

The biG cHeef* will grapple with a mOmenTous decision today: Prime Rib or Filet Mignon for dinner.

He will also consider the seemliness of extending his month-long, taxpayer financed vacation.

Yes, it's true: in the Summer of 2003 the cRown weighs hEaVy on the IMPerial cranium.


* Clearly rejected by a majority of patriotic and discerning American voters in the 2000 election; appointed to office by the so-called supreme court.

[realFedUp]

7. big new Delhi division eh?

sari situation

[htuttle]

8. They're trying to curry favor with their stockholders

...Um...sorry about that....