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IBM to Hire Over 14,000 Workers in India as it Cuts Jobs in Europe and US

Strategic Insights

— 1 min read

IBM plans to increase its payroll in India by more than 14,000 workers this year, even as it cuts 13,000 jobs in Europe and the United States. The tech giant's decision to shift work to India is driven by the surging demand for technology services in the thriving Indian economy and the availability of skilled Indian software engineers. This move has raised concerns among workers and labor unions, who argue that it is an example of relentless cost-cutting and job exportation.

Key Takeaways:

  • IBM plans to hire over 14,000 workers in India this year, a significant increase in its Indian workforce.
  • The company will cut 13,000 jobs in Europe and the United States as part of its restructuring efforts.
  • The expansion in India is driven by the surging demand for technology services in the thriving Indian economy.
  • IBM aims to become a truly worldwide company, dividing work among the most efficient locations.
  • The company's decision has raised concerns among workers and labor unions, who argue that it is an example of relentless cost-cutting and job exportation.
  • Robert W. Moffat, IBM's senior Vice President, attributed the expansion to the opportunity to hire skilled Indian software engineers.
  • The Washington Alliance of Technology Workers (WashTech) obtained an internal IBM document on Indian employment, which was quoted in "The New York Times".
  • The IBM document cited by WashTech shows that the company is pushing offshore outsourcing to cut costs and export skilled jobs abroad.

Statistics:

  • IBM plans to hire over 14,000 workers in India this year.
  • The company will cut 13,000 jobs in Europe and the United States.
  • The Indian economy is expected to continue its growth trajectory, driving demand for technology services.
  • The number of skilled Indian software engineers available for hire increases the efficiency of IBM's operations.

Sources:

  • "IBM to Hire Over 14,000 Workers in India, Cut Jobs in US and Europe", The New York Times
  • PTI, 27-06 1012 (no exact date given)

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