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IBM cuts jobs in China
June 27, 2013, 9:19 am

[Getty Images]

IBM is the world’s biggest computer service provider [Getty Images]

US technology giant, International Business Machines Corp (IBM) is cutting jobs in China after a disappointing decline in earnings.

The world’s biggest computer service provider said in an emailed reply to China Daily on Wednesday, from its China office, that “change is constant” in the technology industry and that “transformation is an essential feature of our business model”.

It added: “Consequently, some level of workforce remix is a constant requirement for our business.”

Although the company avoided giving any actual numbers of potential losses, a report on local Chinese news site suggested the New York-based multinational is expected to axe at least 500 staff on the Chinese mainland.

The layoff plan comes after it reported lower-than-expected first quarter earnings in mid-April.

Total group revenues were down five per cent to $23.4 billion. In BRICS countries, China, Brazil and Russia, they sank by one per cent.

Source: Agencies