IBM India has refused to deny a report that the company is planning to cut 16,000 jobs globally, calling it 'just a rumour'.

The employee union for IBM, Alliance IBM, made the claim on its website. If true, it would be the biggest round of lay-offs in recent years. In 2007, more than 2000 employees were shown pink slips in two phases. In 2002, IBM made huge job cuts of 15,600.

A company spokesperson refused to confirm or deny the report, telling IT Examiner, "IBM does not comment on rumours or market speculation." Another was equally ambiguous, saying, "We constantly rebalance our workforce and continue to invest in growth areas."

But sources within the company told IT Examiner that job cuts were indeed in the pipeline. "With the 16,000 job cuts, there will be probable impact on India too but it’s going to be fractional one," said one. "But news of lay-offs in India is not yet doing rounds in the IBM India offices yet. At least, I am not aware of any such move from the management till now."

A senior employee at IBM told IT Examiner, “A month back,10 employees were taken off from a project and were sent to bench. We were afraid after that and felt bit insecure. The guys who are working on contractual basis have something to worry about. Those who are on projects are doing fine till now but once they are done with the existing projects and find no new ones to work on, their contracts come in danger of termination."

The Alliance for IBM national coordinator for the New-York based operations of IBM, Lee Conrad, reportedly said that employees have been hearing that layoffs will take place in late January.

 The general secretary of the Indian arm of the IT-BPO Union, UNITES India, R Karthik Shekhar, said:  "IBM had done the same thing in the past but they didn’t come out. The entry level and junior employees will be affected the most if IBM takes such a drastic decision." He added: "The impact will be more on developed countries and fractional, but least impact will be on India”. X