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  Tuesday, October 10, 2006
94 IBM jobs on cut list
Technical staffers look for new spot





The "redeployment" of some technical staff in IBM Corp.'s Systems and Technology Group has proved to be a game of musical chairs, but nobody's singing.

Monday, the company confirmed reports 400 of that group had been told their jobs would end in 30 days unless a last-chance search wins them another slot. After that, they go off the payroll and collect a severance payment.

Of the 400 nationwide, nearly a quarter work in Dutchess county: 71 in Poughkeepsie and 23 in East Fishkill. Most of the employees work in developing products. More than 11,000 IBMers work in Dutchess. County. Other IBM sites affected would be in Austin, Texas; Raleigh, N.C.; Rochester, Minn.; San Jose, Calif.; Tucson, Ariz. and Burlington, Vt.

'Reducing redundancies'

The numbers came from Jeff Couture, an IBM spokesman based in Burlington, where 16 workers out of about 5,700 were affected. Notice was given throughout the Systems and Technology Group.

"We're reducing some redundancies in some areas," Couture said, "and streamlining some skills." He also said the "resource action" reflects the reason for the Sept. 7 redeployment notice: "to move some development employees into various roles more closely connected to serving our customers."

Several hundred staffers were redeployed and now have other jobs, he said.

Some of the 400 others may find them, too.

But Ralph Montefusco of Burlington, an organizer for the Alliance@IBM, an employee group that is part of the Communications Workers of America union, said, "I don't know how much of it is false hope and how much of it is real, as far as getting jobs in IBM."

The industry trend is for jobs to be outsourced to other companies or sent overseas, "and people are left to find whatever they can within the corporation," he said. Even those who succeed often face lower-paying work, relocation far afield and lack of moving-cost reimbursement, he said.

Montefusco also cited "the performance rating pressure that people are under" among the obstacles facing employees who take new jobs. "Do you really want to be the new person ... in a group," he said.

Couture said despite the cuts, IBM's approximately 130,000 U.S. workers would likely be more numerous, "by a few thousand," at the end of the year than at the start.

Severance pay will be one week for each completed six months of service, with a minimum of two weeks and a maximum of 26. The company offers some transition medical and life insurance benefits as well as outplacement and career counseling.

Affected employees were told beginning Thursday, according to an internal memo obtained by the Alliance@IBM. A similar report was posted by EETimes online, citing what appears to be the same memo.

Craig Wolf can be reached at cwolf@poughkeepsiejournal.com

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