IBM Announces Corporate Headquarters Reductions

Armonk, N.Y. -- February 24, 1993 -- IBM (NYSE: IBM) today announced it will eliminate more than 500 corporate staff and service operations positions and said layoffs will be required.

The reductions include about 150 corporate staff positions -- about 15 percent of the current corporate staff -- and about 350 service operations jobs. The service operations reduction amounts to nearly 10 percent of the positions in corporate headquarters units that provide billable services to IBM's independent businesses.

A selective voluntary transition program and internal job placements will be used, IBM said, but layoffs will be required to accomplish the total reduction.

"While continuing to redirect resources to growth opportunities and to increase the independence of our businesses," IBM Chairman John F. Akers said, "we are also continuing our drive to improve profitability by reducing overhead. These further reductions in the corporate structure can be accomplished more easily now as our business units have become increasingly self-sufficient."

CONTACT: Jim Ruderman of IBM, 914-765-6631

Copyright 1993 PR Newswire Association, Inc.