International Business Machines (IBM), the world's largest computer services provider, began cutting US jobs on Thursday as part of a global restructuring plan announced in April, a person familiar with the move said.

The reduction targets employees with a range of seniority , from rank-and-file staff to executives, said the person, who asked not to be named because the information is private. Some US workers began to receive notifications of the cuts last night, according to Lee Conrad, a coordinator for Alliance@IBM, an employee group. The restructuring will cost $1 billion worldwide, including severance expenses.

IBM announced the jobcutting effort after releasing disappointing first-quarter results in April. The Armonk, New York-based company posted profit of $3 a share in the period, missing the $3.05 predicted by analysts -- the first earnings shortfall since 2005, according to data compiled by Bloomberg. IBM said at the time that the job reduction would be concentrated overseas and mostly complete by the end of June.

The company is probably cutting 6,000 to 8,000 jobs globally, based on the $1 billion cost figure, said Laurence Balter, an analyst at Oracle Investment Research in Fox Island, Washington.

That would represent less than 2% of IBM's total workforce of 434,246 as of Dec. 31.

'Workforce remix'
Alliance@IBM said on its website that 121 employees were cut from a unit within IBM's Systems and Technology group, the hardware division that saw revenue drop 17% last quarter.

IBM also has been cutting hours of its contract employees. CDI Corp, a Philadelphia-based provider of staffing and outsourcing services, told its staff working for IBM to limit their hours in May.

Source : TOI