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To: Johnny Canuck who wrote (38013)	8/14/2002 3:33:56 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70981

Tuesday August 13, 8:13 pm Eastern Time Reuters Business Report IBM Is Cutting More Than 15,600 Jobs NEW YORK (Reuters) - International Business Machines Corp. is cutting more than 15,600 jobs -- above what had been expected -- in its computer-services and microelectronics businesses, according to a regulatory filing made public on Tuesday. ADVERTISEMENT The job cuts were confirmed when IBM reported its second- quarter earnings, but the precise number and details were not disclosed at that time. IBM disclosed the figures in its quarterly filing with the Securities and Exchange Commission. IBM, based in Armonk, N.Y., said it will cut 14,213 jobs, mostly in its services business, which had about 150,000 employees as of the end of last year. IBM overall had about 320,000 employees at the end of 2001. Another 1,400 cuts will come from its microelectronics unit, IBM said. The company will be adding about 30,000 workers with its planned acquisition of consulting firm PriceWaterhouseCoopers for $3.5 billion in cash and stock. The job reductions -- analysts had been expecting about 10,000 -- at the world's largest computer maker are the company's biggest in more than a decade as IBM and other high-tech companies suffer under stagnant spending on information technology by corporate customers. Last year, when other tech companies were slashing their head count as hardware sales dried up, IBM was adding staff as its strong services revenue offset weakness elsewhere. But that strength began to erode in the fourth quarter as customers cut spending on services too. The cuts are concentrated in the company's services unit, because it can most easily absorb the job losses in that area, analysts have said. But other areas saw cuts, too. Last month, IBM said it eked out a second-quarter profit of just a few pennies a share as it took a $1.4 billion charge to exit money-losing businesses and cut jobs. Even without the large charge, profit at IBM, which sells everything from computer software to microchips to computer services, fell sharply as corporations cut spending. IBM said in the regulatory filing that about 3 percent of the 1,400 workers in its microelectronics business had left the company as of June 30. The remainder are expected to leave the company by the end of this month. About 57 percent of the 14,213 people had left the company as of June 30, IBM said. The majority of the remaining people will have left the company by the end of September. IBM shares rose 16 cents to close at $71.90 on the New York Stock Exchange on Tuesday.