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IBM posts record profits, fewer jobs

Jim Gordon

Jan-29-10, 02:44 PM

2 Votes

Topics: Technology

For IBM, 2010 brought record profits and thousands of fewer jobs in the United States. That was the sum of the report from Big Blue to investors last week along with indications that 2010 will bring the same formula of strong profits and more outsourcing of jobs overseas.
On Jan. 19, IBM reported for 2009 a record profit of $13.4 billion for the year, up 9 percent from 2008's net income of $12.3 billion. The company's revenue fell to $95.8 billion last year, down from $103.6 billion a year before. IBM was able to boost its profit despite lower sales by cutting more than $9 billion of costs and expenses.

Though IBM does not discuss job-cut figures, the group Alliance@IBM, a union supported group, said IBM cut thousands of jobs in the United States in 2009 while increasing its overseas work force. State records show about 1,000 jobs were cut in Dutchess and Orange counties, reducing IBM’s Hudson Valley work force to below 10,000 for the first time since 1999.

“Last year IBMers remember the company also announced record profits and the very next day terminated about 5,000 employees around the country,” said Lee Conrad, national coordinator of Alliance@IBM, who worked 26 years for the company. “So when employees look at record profits, they don’t see any connection between record profits and them keeping their job. All they see is shareholders doing well and employees finding the unemployment line.”

Doug Shelton, who was identified by an IBM spokesman as the company official who could discuss job cuts, did not return a call seeking comment.

According to Alliance, IBM had 105,000 U.S. workers at the end of 2009, down from 115,000 in 2008, continuing a trend that saw their domestic work force shrink from about 134,000 workers in 2005.

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