'Lean' IBM NZ avoids Aussie redundancy blues

Restructuring in the mid-90s looks set to save IBM New Zealand from the current round of layoffs.

Computerworld understands IBM New Zealand will avoid the redundancies affecting its flabbier Australian counterpart.

Worldwide, Big Blue plans to shed up to 9600 jobs, with 200 to 400 staff in Australia facing "redeployment".

IBM officials have declined to comment on redundancies, but a company source says analyst IDC was "spot on" when it predicted IBM New Zealand might keep its staff thanks to expanding sales and having been through major restructuring in the mid-1990s.

The source says that left IBM New Zealand, which employs 900, as a "lean" operation, without the potential to make the cost savings that would be possible in Australia.

Consequently, no jobs would be lost here in the current redundancy round.

Last week, union officials in Australia claimed some 200 to 400 of IBM Australia's global services division staff would be made redundant if they were not redeployed internally by June 18.

This has led to some staff taking strike action at IBM GSA's office in the Sydney suburb of St Leonards.

IBM Australia has declined to comment on the numbers affected by the redeployment programme.

In the US, some 750 jobs have already gone. IBM employs 320,000 people worldwide.

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Tags Redundancy

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