IBM to Cut Over 1,000 Jobs

Facing a stubborn slowdown in the microprocessor industry, IBM Corp. said Wednesday it would cut about 1,000 jobs from seven U.S. chip manufacturing and development plants and an additional 180 jobs at a storage technology plant.

Armonk, N.Y.-based IBM said it aimed to reduce the size of its microelectronics division by 4.7% to about 20,500 employees from 21,500 workers. IBM employs about 320,000 people worldwide.

The largest share of the cuts will occur at a manufacturing plant in Burlington, Vt., where about 500 employees, or 6% of the plant’s 8,300 workers, will be laid off.

In Endicott, N.Y., where IBM packages chips and manufactures circuit boards, 400 designers, technicians, engineers and managers will lose jobs, said Todd Martin, spokesman at the Endicott plant, which employs 5,500.

IBM’s chip-making plant in East Fishkill, N.Y., also will lose workers, as will design and development labs in Raleigh, N.C.; Rochester, Minn.; Fremont, Calif.; and Boulder, Colo.

Separately, IBM will cut 180 jobs in its storage technology division at the Rochester plant.

Layoff notices have been sent to more than 1,000 employees, but IBM expects some to find employment elsewhere in the company.

IBM senior vice president John R. Joyce predicted a continued slowdown in microelectronics sales for the fourth quarter.

Meanwhile, IBM’s plans to open a new chip-making plant in East Fishkill are not affected. IBM will begin initial production in August.

IBM shares fell $2.05 to $112.15 on the New York Stock Exchange.