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NEW YORK – IBM is requiring most of the US employees in its hardware division to take a week off on drastically reduced pay in a bid to cut costs as the division struggles with falling sales, particularly in the server market.
The employees will take a week off on one-third pay starting either August 24 or 31, said Jay Cadmus, a spokesman for the systems and technology group. Executives in the division will take no pay at all during the week.
Sales in the hardware business, which includes storage devices and microelectronics, slid 12 percent in the period from a year earlier to $3.76 billion. In the second quarter, IBM spent $1 billion to cut thousands of employees. |
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