(Source: The News & Observer)

By David Ranii, The News & Observer, Raleigh, N.C.
Jan. 27--Computer services giant IBM eliminated more than 2,800 jobs in the United States and Canada last week, and more cutbacks are expected, according to the union seeking to organize the company's workers.
It's unclear how many jobs were cut at the company's Research Triangle Park site, said Lee Conrad, national coordinator of Alliance@IBM. RTP is IBM's largest U.S. site with about 11,000 workers.
Rumors of massive job cuts have been rippling through the ranks of IBM workers for weeks, with some fearing that 16,000 jobs will be eliminated. An IBM spokesman recently said that number is "exaggerated," but Conrad believes that cuts of that magnitude could happen. IBM had 386,558 employees worldwide at the end of 2007, the most recent total filed with the Securities and Exchange Commission.
Conrad said IBM cut 1,419 jobs last week in its software group, which has operations in RTP. It also cut 1,449 jobs in its sales and distribution group, which is spread across the company's many locations, including RTP. Those totals, said Conrad, are based on information supplied by employees who lost their jobs, including documents the employees received from IBM.
IBM spokesman Doug Shelton declined to discuss how many jobs were cut in RTP or elsewhere.
"What I can tell you is that IBM continuously evaluates its mix of skills and resources, throughout the years, and makes changes as needed," Shelton said. "The nature of our business is such that we must constantly assess employee skills and resources and, at any point in time, give IBM the flexibility to match the current and future needs of our clients. Managing resources in this way keeps us competitive, while adapting to the evolving needs of our clients."
IBM laid off 38 workers at its RTP operation in November, a month after it cut 100 local contract workers.
Conrad said he anticipates more job cuts today at the company's systems technology group, which has operations in RTP.
"We're afraid it's going to be a deep one," Conrad said.
With spending on information technology expected to slow significantly this year, companies across the sector have been trimming jobs. Among the local employers that have done so are Alcatel-Lucent, Allscripts Misys Healthcare Solutions, Amkor Technology, ChannelAdvisor, Consonus, Hatteras Networks, Lulu.com, Nortel Networks, Qimonda and Sony Ericsson.
IBM is doing better than most technology companies. Last week, it reported fourth-quarter profits that exceeded expectations despite a decline in sales, and it also forecast an annual profit that outpaced analysts' estimates.
david.ranii@newsobserver.com or 919-829-4877
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