IBM to slash 15,000 jobs

COMPUTER giant IBM is to axe 15,000 jobs throughout Europe next month as part of a companywide reorganisation.

The job losses, most of which will hit Britain, are in response to mounting shareholder pressure over rising costs and a sharply falling share price.

The main IBM business affected is its Global Services division, which runs implementation projects and consulting services.

According to insiders, the company is also to dismantle its European, Middle East and Africa (EMEA) corporate structure-a move that will take its toll on hundreds of high-level IBM regional managers.

All the staff affected by the changes are to be found new jobs or be made redundant.

IBM told staff of the planned job cuts in a conference call and presented them with outline redundancy terms that amount to two weeks' pay for every year of service.

Though employees have until Friday to opt for voluntary redundancy, the scale of the losses - five per cent of the 325,000 workforce - means that some compulsory redundancies are seen as inevitable.

The scope of the restructuring and the dismantling of IBM's EMEA region will take analysts by surprise.

IBM refused to discuss the proposed restructuring. A spokesman said: 'As we decide how we will move forward, we will interact with employees and employee representatives as required to discuss the proposals we are considering. We have made no final decisions.'