IBM Layoffs Stretch From Northeast To Southwest U.S., More Than 1,600 Jobs Cut

Reports reveal that layoffs at IBM will affect workers from along the northeast coast to the southwest of the United States. Roughly 1,600 jobs are being cut to slash the payroll in the current quarter.

Reports show that workers are being laid off in Vermont, Massachusetts, New York, and North Carolina, The Associated Press reports. According to Newsmax.com, workers are commenting on the website of employee group Alliance@IBM, saying that cuts are being made at IBM facilities in Columbia, Missouri, Tucson, Arizona, and Austin, Texas as well.

Vermont Governor Peter Shumlin was among the first governors nationwide to publicly confirm IBM's layoffs Wednesday morning, BurlingtonFreePress.com reports.

"We heard from IBM today that sites around the United States, including the Essex facility, will be notified of a workforce reorganization that will result in layoffs," Shumlin said in a statement.

"I am always concerned when we learn that Vermonters face job losses," he added.

Shumlin spokeswoman Susan Allen said IBM had not informed the governor's office how many IBM layoffs were planned in Vermont, according to The Christian Science Monitor.

Fox Business reports that Alliance@IBM has confirmed at least 1,600 layoffs.

IBM has confirmed that job cuts are taking place, but not specific numbers, according to Bloomberg. Calculating the impact of these layoffs is difficult because the company does not make public the number of employees it has in the U.S., after critics accused the company of sending jobs overseas, MSN Money reports.

Globally, IBM has about 434,000 employees as of the end of 2013. Bloomberg estimates that almost 8,000 workers could lose their jobs worldwide after this round of cost cuts, and that most of the employees affected will be overseas.

MSN Money reports that many of IBM's businesses have struggled recently, which may have triggered the slash in jobs. Services saw a 4% decline in revenue. Software sales were flat, and its hardware business plunged 17%.

IBM spokesman Jeff Couture said in a statement that "some level of workforce remix is a constant requirement for our business. Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans." 

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