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IBM to Outsource Thousands of U.S. Jobs to India

IBM will slash 5,000 U.S. employees, outsourcing many of their job positions to India. The new cuts will hit the global business-services unit.

Outsourcing is nothing new for Big Blue: already about 71 percent of its workforce lies outside the United States.

The news, reported by the Wall Street Journal, comes amid talk of an IBM-Sun Microsystems merger, and after a fourth quarter that saw a 12 percent gain in earnings to total $4.5 billion.

IBM has already made 4,600 job cuts this year, and expects to spend about $300 million to $400 million to pay out severance.


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