IBM Israel Ltd. is firing 100 of its 2,000 employees, it announced. The
employees who were informed that they are losing their jobs work in sales and
marketing. The extent of the layoffs is not large in terms of IBM Corporation’s
size, but it is unusual and is part of the company’s effort to rebalance its
workforce, as its CFO described it in a conference call in late
IBM Israel, run by general manager Ricky Kaplan, has been
outsourcing overseas many administrative activities, resulting in a slow but
steady loss of jobs. IBM Corporation, which focuses on profits because of its
lack of growth, is constantly streamlining. The layoffs in Israel are apparently
tied to these developments.
IBM Corporation is usually very cagey about
the number of workers who will be fired as part of layoffs. The company, which
has 430,000 employees worldwide, recently said it would spend $1 billion in the
second quarter on cutbacks to improve its financial performance.