IBM Chief Hints at Possible Job Cuts

IBM Corp. Chief Executive Sam Palmisano said the world’s largest computer maker needs to cut costs ahead of the elusive rebound in technology spending. Palmisano hinted in his first address to Wall Street analysts of pending job cuts and “adjustments” in the semiconductor business.

He committed to cutting $1 billion to $2 billion of costs this year and in following years and said the company was fixing the businesses that have dogged its growth in recent years, such as personal computers and hard disk drives. Analysts found Palmisano, who spoke after the markets closed, short on specifics; one said he thought the share price would fall as a result. IBM shares fell 98 cents to $84.50 on the New York Stock Exchange.