Thousands lose jobs as IBM goes on cost-cutting mode

Technology giant IBM's workforce-rebalancing efforts have now hit India, with the company asking several of its employees in its hardware business unit to quit. 

The total number of employees impacted, however, could not be confirmed. An email sent to IBM India did not elicit any response.

IBM's employee union in the US, however, confirmed the news. 

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"Yes, IBM India is firing a large number of workers today. We do not know how many, or how many are still employed. We are extremely concerned in IBM's drive towards its goal of $20 earnings a share for 2015, it is discarding its greatest asset - its employees. IBM India employees are being terminated and forced out of the company, as are thousand of hardworking IBM workers around the world. We express solidarity with all being impacted by IBM's callous disregard for its workers," said Lee Conard, national coordinator, Alliance@IBM CWA Local 1701.

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Freeze on hiring

Sources said the layoffs were taking place in IBM's systems technology group, which focused on the hardware business and has about 8,000 employees.

"For about a year, the company has put a freeze on hiring in its software and services units in India. We have been told it is restructuring the organisation and, therefore, there will be no new hires," said an IBM India software and solutions group employee.

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The official site for IBM employees' union said, "In 2013, IBM spent $1 billion on what it called 'workforce rebalancing', which means nothing else than a giant job cut. In 2014, the company is set to spend another $1 billion to eliminate an estimated 15,000 jobs worldwide."

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GIANT JOB CUTS 

Layoffs in IBM's systems technology group, which focuses on hardware business and has about 8,000 employees 

Company set to spend another $1 billion to eliminate an estimated 15,000 jobs worldwide. 

In 2013, IBM spent $1 billion on what it called "workforce rebalancing".