IBM Australia is set to slash jobs and restructure its operations. It is also shifting services work to Asia.
The move comes at a time when IBM is tendering for work in Australia with major parts of the contracts based on work being done in India or outside of Australia. IBM has said that it is cutting hundreds of jobs amounting to three per cent of its Australian workforce.
“This quarter IBM Australia is redeploying a number of employees across the business,” he told CDN. “Less than 3 percent of IBM Australia’s current workforce will be affected by this action.”
The spokesman said the move is part of a rebalancing of its workforce to meet changing needs of its clients and to remain competitive.
“This is especially so given that we run a solutions and services business operating in a globally competitive marketplace,” he said.
“IBM Australia has a strong track record in successfully redeploying employees across the organisation, and will provide assistance, skills training and support for those affected to find other roles within the organisation. However, we expect some redundancies may result.
“To put this figure into context, in the first quarter IBM Australia brought nearly twice this number of employees into the business in response to client demand for specific skills.
“IBM continues to retain and win new business in the marketplace. In recent months we have signed significant agreements with clients such as Telstra, Russell Investment Group, Medibank Private, Mater Health Services, Ricoh, NAB and Queensland Government.”
The jobs to go are said to be spread across the company, which has a workforce of around 10,000 in Australia. Some of the jobs may go to India under offshoring arrangements. – Kate Castellari