IBM to sack 500 in Sweden

[KiwiCoromandel]

IBM to sack 500 in Sweden

By Associated Press Writer

March 18, 2005

International Business Machines Corp., the largest provider of computer hardware and consulting services, said on Thursday it would lay off about 500 workers in Sweden, or nearly nine percent of its work force in the country, shutting down most of its operation in five cities.

IBM spokeswoman Aasa Barsness said the company will close offices in Vaesteraas, Eskilstuna, Linkoeping, Alingsaas and Huskvarna, and that all workers on those sites were given notice on Thursday of the pending layoffs.

A report posted on the trade union Sif's website said 300 of the jobs will be cut in Vaesteraas, a city located about 90km west of Stockholm. IBM has been providing mainly outsourcing services in Vaesteraas, for companies like LM Ericsson and the Swedish postal service.

Union officials said they feared the jobs would be outsourced to countries like India where expenses are cheaper, but Barsness said no decision had been made whether to move the jobs.

But, she added: "We're looking at how to co-ordinate our operations to continue to be profitable in Sweden, and international locations may become an option."

Armonk, NY-based IBM has about 4000 employees in Sweden.