I.B.M. to Cut Work Force

By The Associated Press

October 3, 1989

The International Business Machines Corporation said yesterday that it would offer special payments to people who quit or retire at four locations, a step that is expected to cut 600 to 1,000 jobs.

The job cuts, which are voluntary, represent less than half of 1 percent of I.B.M.'s United States work force of 223,000.

The four locations are Oswego, N.Y., and Manassas, Va., where I.B.M. makes specialized equipment for military contracts; Endicott, N.Y., where it makes the 9370 line of minicomputers; and Lexington, Ky., where it makes typewriters and printers.

Most people who will be offered the special payments are in administrative and support areas of the company, said Michael Reilly, an I.B.M. spokesman.

I.B.M. also said it had begun shipping an upgrade designed to add the more powerful Intel Corporation i486 microprocessor to its line of Personal System/2 Model 70-A21 computers. The i486 is the most advanced chip that runs I.B.M. PC compatible software. I.B.M., which announced the upgrade previously, said that it was beginning volume shipment a full quarter ahead of schedule.