IBM job cuts to resonate overseas

NEW YORK — International Business Machines Corp. said Thursday it will be cutting jobs in Germany, the United Kingdom, Italy and France as part of a restructuring that will slash between 10,000 and 13,000 positions, mostly in Europe.

Chief Financial Officer Mark Loughridge named the countries affected on a conference call with analysts. The company had announced the restructuring after the U.S. markets closed Wednesday.

The cuts, which will affect between 3 percent and 4 percent of IBM’s 329,000-person work force, are in line with analysts’ predictions.

IBM shares fell $1.58, or 2.1 percent, to close at $75.50 in Thursday trading on the New York Stock Exchange. They have traded in a range of $71.85 to $99.10 over the past year.

IBM spokesman Fred McNeese in Paris said most of the cuts in Europe will involve workers voluntarily leaving their jobs, but declined to give a breakdown of how many jobs would be lost in each country.

“We’re still working with work councils and consulting with employee organizations,” he said.

Under the law in parts of Europe, councils of employee representatives must be consulted on many workplace issues at larger companies. Layoffs must first be agreed with them.

IBM said the changes will be implemented by July 4, subject to the completion of the consultation process.

The company began eliminating jobs in Europe even before it announced its disappointing first-quarter earnings last month. In March, IBM laid off 500 Swedish workers, 9 percent of its work force there, and shut down most operations in five cities.

“It’s no secret there has been a period of soft economic conditions in Europe and many other countries,” Loughridge said.

The changes will make the company’s services business less hierarchical and more streamlined, Loughridge said.

The company will also cut jobs in the United States. Those cuts will be involuntary.

In continental Europe, however, IBM will have to deal with European Works Councils, which provide a forum for unions to meet with managers and be consulted on changes.