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IBM to Cut Over 15,000 Employees Due to Decline in Tech Spending

Press release from the issuing company

August 14, 2002 --(WhatTheyThink.com)-- IBM has revealed that it is in the process of cutting over 15,000 jobs. The company says it is about 5 percent of its work force. IBM did not announced the layoffs publicly, but it appeared in a filing this week with the Securities and Exchange Commission according to the Associated Press. Employees losing their jobs were notified in several rounds during the second quarter, which ended June 30. The company said that most of the job cuts are in the Global Services unit, with some workers laid off in its servers and software businesses. The Microelectronics division, which manufactures semiconductors, also experienced job cuts. IBM said the cuts were in response to the recent decline in corporate spending on technology services. The company will be adding about 30,000 workers with its planned purchase of consulting firm PriceWaterhouseCoopers for $3.5 billion in cash and stock.