CNBC's Jon Fortt Doubts IBM Is Laying Off 100,000 Employees

Loading...
Loading...
Reports surfaced on Monday suggesting that
IBMIBM
is planning a massive reorganization involving 26 percent of its workforce was questioned by CNBC's Jon Fortt. According to
Forbes's Robert X. Cringely,
nearly one in four IBM employees will soon find out they will be out of a job as early as February as part of the company's largest reorganization code-named “Project Chrome.” Forbes noted that the mass layoff is an “accounting resource action” following 11 consecutive quarters of declining revenue. “Some reorganizations are well thought-out and absolutely essential but Project Chrome won't be one of those,” Cringley wrote. “It will traumatize the corporation and put most accounts into immediate crisis. While survivors dig out from the devastation IBM will change their managers and their job descriptions. With fewer people and changing roles, things IBM has contractual obligations to do for its customers will start to be overlooked. If you are an IBM customer you should probably should start working on plans to keep your projects moving forward and your systems running.” However, CNBC's technology expert Jon Fortt took to Twitter, suggesting Cringley's numbers are incorrect and the total number of layoffs will ultimately be less than 10,000.
Shares of IBM were trading higher by 1.65 percent during Monday's trading session as investors and traders were made fully aware of the conflicting layoff numbers.
Loading...
Loading...
Posted In: NewsCNBCForbesJon ForttProject ChromeRobert Cringely
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...