IBM to cut up to 13,000 jobs

SAN FRANCISCO - International Business Machines Corp. said on Wednesday it would cut up to 13,000 jobs, primarily in Europe, as part a global cost-cutting plan that will result in a pre-tax charge of $1.3 billion to $1.7 billion. 
IBM, the world's largest computer company, said it was restructuring its operations to better focus on high-growth markets. The company said it plans to make the voluntary and involuntary job cuts during the second quarter.  

IBM employed 329,000 staff worldwide at the end of 2004, the last time the company disclosed its total workforce figures. On that basis the loss of 13,000 jobs would represent a cut of about 4 per cent. 

Last month, IBM had confirmed it planned to lay out a restructuring plan, including job-cuts, following a bombshell earnings announcement, in which it blamed disappointing profits and sales on economic weakness in key European markets and Japan, as well as its own problems closing deals.  

IBM spokesman John Bukovinsky said that most of the job cuts in Europe would be voluntary and that talks had begun with workers councils and other organisations on the timing of these actions.  

- REUTERS