IBM Planning More Layoffs – Poughkeepsie and East Fishkill Likely to be Affected
DUTCHESS COUNTY, N.Y. – According to published reports, IBM plans to lay off hundreds of workers throughout New York next month, many of them in the company’s systems and technology group that oversees microelectronics manufacturing operations in various Hudson Valley locations, including East Fishkill and Poughkeepsie..
The Albany Times Union reports that the numbers are expected to be similar to last year when IBM laid off 3,300 U.S. workers, including 700 in Poughkeepsie and East Fishkill.
The Times Union report said that IBM revealed the layoffs in a conference call with analysts on Tuesday. Chief Financial Officer Martin Schroeter explained that a $1.7 billion decrease in profits by the systems and technology group would force a “rightsizing” of the division. According to The Times Union report, the cost of the job cuts would be roughly $1 billion, which is in the neighborhood of last year’s reorganization plan.
IBM recently disclosed that it was selling off its low-end server business to Lenovo, the Chinese company that previously acquired IBM’s PC business. The Times Union said that the server unit is a major part of IBM’s hardware business, although the unit sold to Levono doesn’t have local operations. It said that the company’s desire to sell off a piece of its server business and also slash the head count in the systems and technology group, does not bode well for the future of IBM’s microelectronics business in New York, the cornerstone of the region’s high-tech economy.