(Host) One of the state’s largest employers – IBM — confirmed today that it’s cutting 180 jobs at its Essex Junction facility.
Company officials say the reductions are a response to a "change in market conditions" for the computer chips that are manufactured at their Vermont facility.
VPRs Bob Kinzel reports.
(Kinzel) Rumors have been circulating for several weeks that IBM was considering job cuts.
The Essex Junction plant is part of the company’s Systems and Technology group – it’s the only IBM division that saw revenues decline last year partly because of a slowdown in demand for the products made in Vermont.
IBM spokesperson Jeff Couture says 110 regular positions and 70 long-term supplemental employees are being eliminated:
(Couture) "It’s a reaction to sort of current business conditions. We’re taking the action to rebalance skills. We’re looking to reduce costs and improve efficiency and we’re responding to involving market conditions…So we needed to take the action to make sure that we’re competitively positioned for current business and our outlook going forward."
(Kinzel) Several years ago IBM was the largest employer in Vermont. In 2001, it employed roughly 8,500 people, but after a series of layoffs, the workforce was reduced to about 5,600 employees at the beginning of this year.
Couture says he doesn’t expect any additional job cuts in the foreseeable future:
(Couture) "Long term we see continued opportunity for our business. It’s more of a statement about our addressing current business needs than really the long term potential for IBM in Vermont."
(Kinzel) The Vermont Agency of Commerce and Community Development will now make programs available to help workers who’ve lost their jobs. Agency spokesperson David Mace:
(Mace) "The state Department of Labor will assist the displaced workers with a rapid response. These are sessions that typically occur at the work site. Officials from the Labor Department will visit the site and provide information and assistance to the affected employees."
(Kinzel) Last week, the state reported its highest unemployment rate in the last 15 years. Despite the IBM job cuts, Mace isn’t discouraged about the future:
(Mace) "I think we’re certainly not immune from the effects of the national economic slowdown but I think there’s still plenty to be optimistic about."
(Kinzel) Mace says the state hopes to have its rapid response teams in place by the middle of next week.
For VPR News, I’m Bob Kinzel in Montpelier.