Retrenched employees of IBM manufacturing shutdown to get separation package

Retrenched employees of IBM manufacturing shutdown to get separation package

share on

- with inputs from Jerene Ang

After announcing last year that the manufacturing of IBM Power Systems is moving from its Tampines plant in Singapore to IBM Guadalajara, Mexico, the tech major has now confirmed that the manufacturing of IBM Z is moving from Singapore to Poughkeepsie, New York, USA.

In a statement to Human Resources, a spokesperson said: "This mission transfer is part of IBM's continual review of the most efficient way to source our products."

IBM declined to comment on the number of workers laid off as a result, stating: "Given the competitive nature of our business, we do not publicly discuss the details of our staffing plans at any of our locations or within any of our organisations."

However, the spokesperson did say that the company is providing "an equitable separation package" to impacted employees.

ALSO READ: Why Singapore is not in favour of mandatory retrenchment benefits

IBM continues to locate its management, cloud, software, blockchain, Watson and services organisations in Singapore as a "strategic location", also the headquarters of its Asia Pacific operations.

In January 2019, IBM Singapore was uplifted as a stand-alone unit from the rest of its ASEAN market, given its growing stature within IBM.

Having been in Singapore for 66 years, IBM has contributed more than US$10 million in equipment and more than 20 years of staff time in education, research and the transfer of technology for skills upgrade in Singapore, per the statement.

Photo / 123RF

share on

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

Free newsletter

Get the daily lowdown on Asia's top Human Resources stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's Human Resources development – for free.

subscribe now open in new window