U.S. computing company IBM is planning a reorganisation of its European services business, putting 2,500 jobs at risk and demoting its European chief, a German magazine reported on Wednesday.
Small European services sites are to be closed by the end of September and the work they do moved to centres in Hungary and the Czech Republic, Wirtschafstwoche said in an advance copy of an article to be published on Thursday, without citing sources.
A spokesman for IBM Europe said IBM "is looking at evolving client needs in the way we operate," adding that it would be premature to discuss the magazine report.
"We have made no final decisions, thus we have nothing to announce," he said. "As we decide how we will move forward, we will interact with employees and employee representatives as required to discuss the proposals we are considering."
Wirtschafstwoche also reported that the work currently being done by IBM's European headquarters in Paris would be split between London, responsible for northern Europe, and Zurich for southern Europe.
The move was to come after IBM divided the responsibilities of its former head of Europe, Middle East and Africa -- Hans-Ulrich Maerki -- between two other managers. Maerki would become chairman, Europe, the magazine said.
The IBM spokesman said staff had been told in January that Dominique Cerutti would take over the running of western and southern Europe and Africa, while Colleen Arnold would take over northern and eastern Europe and the Middle East.
No decision on the location or locations from where these regions would be run had yet been taken, he said.
Source: Reuters
15.04.2005