IBM disputes report of redeploying staffers

Amy Wu
Poughkeepsie Journal

An IBM spokesman disputed an article reporting the company plans to reassign roughly 30 percent of Global Technology Services staffers through attrition this year.

Watson, powered by IBM POWER7, is a workload-optimized system that can answer questions posed in natural language over a nearly unlimited range of knowledge.

On Thursday, U.K. technology website The Register reported that IBM tapped consultant Bain & Co. to help it with strategy, including redeploying 30 percent of service delivery and technology staff.

The Register report cited unnamed "insiders" and a document it said was distributed among senior IBM executives.

“It’s not accurate,” said Clint Roswell, spokesman for IBM’s Global Technology Services business. He did not give specifics on what information was inaccurate.

“The company did not make any announcement and we don’t comment on speculation,” Roswell said.

He said IBM hires “many consultants, many of whom make recommendations. It’s as simple as that.”

In October, the company reported its third-quarter results, a 22nd consecutive quarter of declining revenue. Year over year, IBM’s revenue dropped 0.4 percent to $19.15 billion. But the company touted 20-percent revenue growth in cloud computing, up to $4.1 billion, and beat industry expectations. IBM also announced a cash dividend for stockholders in October, $1.50 per common share.

The company is scheduled to release its fourth-quarter earnings on next Thursday.

IBM has offices and facilities in Poughkeepsie, including manufacturing sites.

The company, headquartered in Armonk, employs an estimated 380,000 people globally. Roswell would not offer a breakdown of how many are in the Global Technology Services unit.

Amy Wu: 845-451-4529, awu@poughkeepsiejournal.com, Twitter: @Wu_PoJo