IBM Corp has embarked on its new round of job cuts, although the 1,100 announced in the US are thought to be just the tip of the iceberg. The actions are intended to improve its competitiveness, mostly in US sales and support operations. It is consolidating its sales and support staff at various locations throughout the US, but it has already covered the cost in the $8,900m restructuring charge it took in July 1993. Nine sales support about locations in the New York and New Jersey area will be consolidated in Cranford, New Jersey. Other places to suffer cuts include Rochester, Minnesota, where a property and site operations location will be consolidated with one contractor at the cost of about 60 jobs. National finance and planning support operations for areas and industry line management will be consolidated at White Plains, New York and Atlanta. The aim is to get sales, general and administrative spending levels, already down to 18% of turnover from 33% four years ago, down to about 15% or better, which is what its competition is driving towards.
