IBM Corp wrongfooted the analysts yesterday by implying that it has exhausted the vast $8,900m reserve it took in 1993 to cover the cost of foreseeable job cuts and restructurings. As recently as last month, analysts were insisting that although IBM might make further job cuts shortly, it had almost certainly still got enough of the reserve left to cover the cost (CI No 2,751). But yesterday, IBM said it planned to take an additional charge of $800m against this quarter’s figures to pay for ongoing expense reductions, which will include staff cuts. The limited workforce reductions will occur in some business units in the fourth quarter, it said, but it did not give more specific information or numbers. Consolidations of leased space and related actions will also continue.
