IBM NZ could escape redundancy blues

IBM New Zealand looks set to avoid the latest expected tranche of job losses, says analysts IDC.

IBM New Zealand looks set to avoid the latest expected tranche of job losses, says analysts IDC.

Since IBM announced a sharper-than-forecast 30% decline in worldwide first quarter earnings last month, media reports have suggested there could be up to 9500 losses globally, representing about 3% of the 312,000 workforce.

The profit plunge is being blamed on stagnant sales inflicted by the worldwide technology slowdown.

However, IBM New Zealand spokesman Laurie Edwards says the company is strong at the moment and has enjoyed a couple of good years.

“Revenue increased significantly in 2001, with double-digit growth,” he says. IBM New Zealand employs 900 staff, with several hundred in Auckland and the remainder in Petone, Wellington and Christchurch.

Edwards declines to comment on whether jobs might go in New Zealand, saying it is global policy not to comment on rumour.

IDC research director Mike Cranna says while IBM has pulled out of the e-government project, Big Blue in New Zealand was meeting its quarterly targets and was locally "in good shape”.

IBM New Zealand was not involved greatly in the specific divisions touted for global job cuts, such as semi-conductors, he says. In addition, the firm here also has no “incumbent large middle-management” thanks to restructuring in the mid-1990s, Cranna says. “I think it might escape [job cuts]."

Join the newsletter!

Error: Please check your email address.

Tags redundancies

More about Big BlueIBM AustraliaIDC Australia

Show Comments

Market Place

[]