Employees at IBM are bracing for possible layoffs.
Big Blue has been planning workforce reductions and expectations are high they will hit the Essex Junction plant this week.
Several employees have reached out to WCAX News saying that significant layoffs are imminent. Other sources close to the plant also expect job cuts. We have contacted the company, but IBM says it does not comment on workforce issues. But the company did signal in April that it would be looking to cut costs after missing earnings targets in the first quarter.
Business reporter Gina Bullard spoke with leading technology journalist Bob Cringley who says IBM is looking to move some work overseas to improve its bottom line.
"Let's understand something; IBM does more business in America than any other country. That's not going to change. They want to do the same amount of business with higher profit margins and lower costs. They've identified labor savings by moving to low cost places like Argentina and China," Cringley said.
To what degree that strategy affects IBM's Systems and Technology Group or the Essex plant in particular Cringley could not say. And again, we want to stress there has been no announcement of any job cuts in Vermont.
The last major job reduction in Essex was in 2009 when about 300 people were let go.