Bad Day At Big Blue
The once-unthinkable has come to pass: On Feb. 24, IBM disclosed layoff plans. The struggling computer giant intends to cut 150 corporate staff positions and 350 other headquarters jobs. Employees have until May 28 to volunteer to leave in return for a minimum of eight weeks' salary and other benefits. IBM has cut 100,000 jobs since 1986 but always through early-retirement programs.
Meanwhile, the search for a new CEO continues. One leading candidate: Morton Meyerson, chairman of Perot Systems.