IBM plans furloughs for some employees

Weeklong furlough for employees, executives in two business units; partial pay for workers, none for execs

IBM has told U.S. employees and executives in two of its business units that they will be furloughed for one week in late August.

Affected employees will receive the equivalent of one-third pay, but executives will not be paid.

[Bloodiest Tech Industry Layoffs of 2013 so far]

The furlough affects the majority of employees in the Systems and Technology Group (STG). Impacted by furloughs as well are the employees in the Integrated Supply Chain (ISC) that support STG.

The mandatory furlough week will either begin Aug. 24 or Aug. 31.

In lieu of other options considered, this approach best balances the interests of employees and the competitiveness of the STG business, said an IBM spokesman.

IBM recently laid off more than 3,000 employees, many of whom appeared to be in the STG group.

Separately, IBM share prices were down mid-day after a Credit Suisse analyst report claiming that an industry wide shift to cloud computing was presenting risks to IBMs technology position.

Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov, or subscribe to Patrick's RSS feed . His email address is

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This story, "IBM plans furloughs for some employees" was originally published by Computerworld.

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