IBM to Cut Manufacturing, Staff

International Business Machines Corp. today announced a $600 million consolidation plan that will phase out some of its manufacturing operations in California, Florida, Arizona, Texas and Ontario, Canada, and said it expects 3,000 to 4,000 employees to retire or leave the company, although none will be laid off. IBM said the steps were being taken to “further reduce costs, provide for future growth and speed new products to customers.”

Manufacturing operations at the Tucson storage products plant will be phased out and the work moved to IBM plants in San Jose, Calif.; Charlotte, N.C., and Poughkeepsie, N.Y. Rolm Systems telecommunications manufacturing will be moved from Santa Clara to IBM’s nearby San Jose facility.