Armonk, NY – IBM Corp. will lay off 1,500, or 7.5% of its 20,000 employees in its semiconductor business.
The layoffs had been widely expected as the business has been losing money in the worldwide semiconductor slowdown, the Associated Press reported.
An IBM spokesman said about 950 of the layoffs will be at its Burlington, VT, semiconductor plant with 200 in Fishkill, NY, and 100 in Endicott, NY. The remainder are at other facilities in the US.
The spokesman said IBM will also work to gain more business for its microelectronics operations by starting a contract electronic design services business. The new business unit will be headed by Pat Pool who will remain VP of worldwide sales and support for the technology group.