"We continually assess our portfolio of products and the
resources needed to support them," he said. "As a result of certain
customer needs, approximately 40 people are being affected."
Martin declined to elaborate on the reasoning behind the
cutbacks.
The job cuts will add to declines in the Binghamton area's
closely watched manufacturing job count. In June, manufacturing jobs
in Broome and Tioga counties totaled 17,700, a 1.1 percent decrease
from a year ago, according to the state Department of Labor.
On Tuesday, IBM managers informed affected employees of the
layoffs. Martin said the workers performed a variety of functions
but declined to comment on their specific lines of business.
However, documents obtained by Alliance@IBM in Endicott indicate
19 of the 40 workers affected by the resource action were cut from
the company's Bank Systems unit. Laid off workers in the department
range in age from 42 to 55.
A rise in electronic payments nationally caused 29 workers in
IBM-Endicott's Payment Solutions department to lose their jobs last
year. Many of those workers were reported to have had more than 20
years with the company.
"People are being cut piecemeal within IBM-Endicott, and it's
very difficult for them to find new jobs in an anemic job market,"
said Lee Conrad, organizer for Alliance@IBM, a group that works to
unionize IBM workers. "People that we talk to say they have a hard
time finding new employment, particularly at the levels of wages and
benefits that they've been used to."
Workers affected by Tuesday's layoffs will remain on the IBM
payroll for the next 30 days and have the opportunity to apply for
other positions within the company, Martin said.
They also can participate in a new program the company introduced
several months ago to offer laid-off workers skills training for
jobs at IBM or other companies, he said. IBM has allocated $25
million for the program.
Martin said workers who do not find other employment at IBM will
receive comprehensive separation packages from the company, which
include severance pay based on length of service; continuation of
benefits for up to a year, based on length of service; and
outplacement and retraining assistance.
IBM employs about 1,600 people in Endicott.
