Lotus to cut 183 jobs as part of reorganization

The meaning of "reorganization" is becoming clearer this week at Lotus Development Corp.

In January, Lotus President and CEO AL Zollar sent an oblique, companywide e-mail announcing a reorganization at the company. Zollar subsequently declined comment on the reorganization when the e-mail came to the media's attention.

Yesterday, the software maker told employees it is eliminating 183 jobs. At the same time, the company is advertising jobs in the Boston area and on its Web site.

The 183 employees have 60 days to find another position at Lotus, at parent company IBM or elsewhere. In the meantime, they will continue to receive paychecks, said Lotus spokeswoman Mary Rose Greenough. The company has a workforce of 6,800.

While speculation rose about the potential for Lotus to be brought more tightly under the control of IBM, Zollar, who came to Lotus after 23 years at IBM, insisted that wasn't the case.

Greenough said the marketing department will bear the brunt of the job cuts due to "redundancies with IBM's software group" but that the reductions may be spread out among other groups.

Last year, Lotus saw a shake-up of its upper management, and some in the company have commented that the current reorganization is merely the ramifications of that down in the ranks.

Meanwhile, the company will continue hiring in the technology and development areas, she said, as well as in services.

Join the newsletter!

Error: Please check your email address.

More about IBM Australia

Show Comments