IBM to cut 5,000 jobs in U.S.

NEW YORK - IBM will cut about 5,000 jobs in the United States, adding to similarly large cuts in the past few months, sources with knowledge of the matter told Reuters on Wednesday.
The job cuts will account for over 4 percent of IBM's U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM's global services business, which includes outsourcing and consulting services.
An International Business Machines Corp spokesman declined to comment. The company, which had a total workforce of 398,455 as of end 2008, has not disclosed how many jobs it has cut so far this year, but has said it was making "structural changes" to reduce spending and improve productivity.
IBM, which now earns around two-thirds of its revenue from outside the United States, has been expanding its workforce in emerging markets like India and China.
At the end of 2008, employment in the BRIC countries -- Brazil, Russia, India and China-- totaled around 113,000.
IBM has been hit by slower U.S. technology spending, although it has fared better than many rivals thanks to its global footprint and a decreased emphasis on hardware sales.
A month ago, IBM affirmed its full-year forecast of $9.20 earnings per share, and said contract signings for its business services had grown so far this year.
Wednesday's news also comes as IBM is in exclusive talks to buy Sun Microsystems Inc, according to sources familiar with the matter, a move that would create a clear leader in the high-end computer server market.
IBM shares fell 0.42 percent to close at $97.95 on the New York Stock Exchange. (Reuters)

Postal service to slash more than 3,000 jobs, offer early retirements

WASHINGTON-- The U.S. Postal Service will be cutting more than 3,000 jobs and offering nearly a quarter of its work force early retirement as part of its efforts to streamline operations amid the worsening economy, the agency said Friday.

Among the job cuts are 1,400 district administrative staff positions and another 1,400 mail processing and management jobs nationwide. More than 500 employees will be out of a job with the closure of six district offices that house only administrative functions, the agency said.

The Postal Service said work force cutbacks will save the agency $100 million annually.
The cuts will save the post office about $100 million annually, the agency said.
The post office ended its first quarter -- October 1 through December 31 -- with a net loss of $384 million caused by a drop in mail volume of 5.2 billion pieces. The 9.3 percent drop was the eighth consecutive quarter of volume declines, the agency said.
In late January, Postmaster General John E. Potter warned Congress that service cuts may be necessary, telling a Senate subcommittee that the agency may be forced to cut mail delivery from six to five days a week.
Such a change would have to come from Congress, which mandated the six-day schedule in 1983.

"We believe that legislative relief is necessary to preserve the nation's mail system," he told the committee.
With no congressional relief on the horizon, Potter announced plans in February to cut $5.9 billion in costs through fiscal year 2010, including eliminating 100 million work hours this year.
The agency cut nearly 27 million work hours during the first quarter last year. The agency also froze salaries of all officers and executives at 2008 levels, reduced travel budgets and stopped construction on new postal facilities.
The early retirement offer for 150,000 of the postal service's 646,000 employees will be the second round of such offers, agency spokeswoman Sue Brennan said. About 9,000 employees took advantage of the first round about three months ago, she said.
Additionally, 162,000 employees are now eligible for regular retirement. (CNN)