Questioning the numbers, ethics, and morality of the latest round of IBM layoffs.
Written by Steve Pitcher
IBM has begun a new round of layoffs that could see the U.S. workforce reduced by 14,000 of the current 70,000 employees.
The news was broken by Bernstein analyst Toni Sacconaghi last week. Sacconaghi arrived at the 14,000 estimate with simple math. He noted that IBM historically followed large gains with cuts to the workforce. IBM has recently reached a $1 billion settlement with the Japanese Tax Authority, which was included on their 10-K report filed February 23, 2016. Since every job cut costs a company, in IBM's case $70,000, Sacconaghi divided the $1 billion gain by 70,000, which is about 14,285.