IBM says Australian job cuts part of business transformation

Vendor would not confirm how many jobs will be cut but media reports put the number at 1500

IBM has responded to media reports that it will be cutting up to 1500 Australian jobs by saying that transformation is an “essential feature” of its business model.

The Sydney Morning Herald reported on June 19 that jobs would be sent offshore to New Zealand and Asia. According to the SMH report, Australian executives were told by the company's New York office they needed to cut approximately 10 per cent of the Australian workforce this year following disappointing global first-quarter results.

IBM reports sluggish quarter; Australia performs badly

An IBM Australia spokesperson told Computerworld Australia that change is constant in the technology industry and transformation is an “essential feature” of its business model.

“Consequently, some level of workforce remix is a constant requirement for our business,” said the spokesperson.

“Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans.”

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