IBM layoff rumors swirling again (Rochester: sale, live, money)

[vter]

No layoffs at Big Blue today according to the 6pm WCAX news.

[68vette]

I just listened the WCAX webcast and there were some layoffs. They cut some contract service jobs, but an anonymous employee stated that there will be more later this week with numbers as high as 1000.

[flu189]

IBM holds their cards close to their vest. Just last week it was said that even the governor might get the actual notice on very short order, even on the actual day that folks get pink slipped.

[vter]

Originally Posted by 68vette

I just listened the WCAX webcast and there were some layoffs. They cut some contract service jobs, but an anonymous employee stated that there will be more later this week with numbers as high as 1000.

That was Monday . There were rumors going around that there would be a bunch more today, but apparently that was not the case (yet anyway). Given the state of today's economy, it will not surprise me to see layoffs in the near future. Hopefully it won't happen though. Time will tell.
From the news script:
10} IBM_VO
--------------------------------------------------------------------------------
Despite indications that cuts were coming to IBM today -- it was business as usual. Employees coming off their shifts this morning said there had been no announced layoffs -- deflecting widespread rumors. The company did let some contract employees go yesterday.

http://tv3.wcax.com/n/tue6p.htm (broken link)

[harry chickpea]

According to a friend, as of the beginning of the year the cafeteria is closed down and the cleaning service that supplied the restrooms with toilet paper has not had their contract renewed. That doesn't sound like business as usual to me.

[MTK1]

Economist forecasts IBM layoffs

When economist Jeff Carr builds his economic forecast for the state, he estimates how many jobs the state will lose. Carr makes a special estimate for Vermont’s largest manufacturer, IBM.

He projects the Essex Junction semiconductor plant will lay off 400 workers a year over the next five years. “I don’t know if that’s enough. That was before the latest rumors,” he cautioned Tuesday.


Economist forecasts IBM layoffs | burlingtonfreepress.com | The Burlington Free Press

[harry chickpea]

"Carr said he has no inside knowledge of IBM’s plans, but he includes the company in his estimates because it is a large employer in a struggling industry. He said he pegs the estimate partly by looking at what happened during previous downturns."

In other words, he knows absolutely nothing, but gets to guess because he is an economist, and people get to believe him. Maybe he should hire on with Miss Cleo?

I'm fairly sure that my research is correct, and I'm looking at the 20th or 23rd as the day the ax falls. There is a lot of stuff that fits into place for a date right around then.

[flu189]

Interesting article in the BFP today concerning an IBM expansion in Dubuque, Iowa. Good examples on how the state, localities, education, commerce, transportation, all mesh together to bring in an employer and of course raise the tax base. The Vermont commerce reps comments were right where we should expect them to be, referring to the size of the business "it's not our sweet spot" as we strive for small scale, and of course the comment that we "go for the base hits . . . not grandslams." Wow. Actually what we really should have said is that we like to play night games, but keep the lights off to save the planet, so it's it bit more difficult to hit the ball.

[quickdraw]

Well here we go, bad earnings reported in the Free Press. The next three days have long been predicted to be axe-time.

[flu189]

Originally Posted by quickdraw

Well here we go, bad earnings reported in the Free Press. The next three days have long been predicted to be axe-time.

It's pretty obvious that we will see more changes here and quite possibly major changes. IBM has now requested to be exempted from the Efficiency Vermont charge tacked on to power bills (actually another tax really) and I can't blame them. Not long ago there was an issue with the state tacking on some kind of software tax, fee, cost as well. It's up to legislature to determine what the value of keeping and generating business here is. In the case of IBM it may very well may be too late to refocus their plans on Vermont operations as I am pretty confident their ultimate course of action has already been mapped out. Today the governor's 2010 budget proposals will be announced at 2:00 pm. I hope it's not just going to be window dressing or reductions in areas designed to look symbolic, yet achieving little to no savings at present and into the future. This would be akin to something I read this morning, namely searching for lost change under the sofa cushions. Paul Krugman recently wrote a piece with concern that the US will now face fifty Herbert Hoovers which made great sense. It did not argue against budget cuts and alignments, but did caution that governors will be apt to make cuts that will have adverse impacts and not end up saving anything in the end.