IBM to cut `thousands’ of jobs

International Business Machines Corp plans to cut “thousands” of staff in the UK, Germany and Ireland as it shifts jobs to eastern Europe, China, India and South America, the Observer reported.

Job reductions have already been carried out in western Europe and more will be made within months, the newspaper said, citing Lee Conrad of Alliance@IBM, a network for company employees.

Indian workers at the company earn about 10 per cent of the amount paid to US employees performing similar tasks, according to the newspaper.

An IBM official told the Observer that a number of US employees have been laid off, declining to comment on future job reductions.

London-based IBM spokesman Joe Hanley said IBM declined to comment on “speculation regarding resource actions.”