IBM Invites Workers to Leave

[Thomas Astebro]

From: Jason Worry <jason...@nuvation.com>
Reply-To: "jason...@nuvation.com" <jason...@nuvation.com>
To: "'tast...@mansci1.uwaterloo.ca'" <tast...@mansci1.uwaterloo.ca>
Subject: FW: Even the big and mighty must stay innovative...
Date: Sat, 18 Oct 1997 04:11:58 -0700
Organization: Nuvation
MIME-Version: 1.0
Status: U

-----Original Message-----
From: Geoff White [SMTP:geoff...@nuvation.com]
Sent: Friday, October 17, 1997 11:03 PM
To: 'Jason Worry (NRC)'; 'Jeff Lewis (NRC)'; 'Michael Worry (NRC)'
Subject: Even the big and mighty must stay innovative...

IBM Invites Workers to Leave
October 17, 1997, 6:20 AM PT

IBM has launched a voluntary buyout plan, which it will extend to most
of
its 241,000 employees, offering a favorable severance and benefits
package
to workers who elect to leave the company. The move is an attempt to
eliminate several thousand jobs and tighten up poorly performing
divisions.
The buyout should eventually result in savings that could run into
hundreds
of millions of dollars. IBM needs the funds to expand into booming areas
such as computer services and the Internet.
The plan, which the company calls a "broad-based voluntary separation
program," will offer between 8 and 26 weeks of pay to employees who
leave,
in addition to a $2,500 payment. The deal could also include health
insurance for up to six months.
In 1994, IBM's employee base had shrunk to 220,000 after years of
downsizing, but has grown since then through acquisitions and hiring.
IBM Corp. plans to release its third quarter earnings on Monday.