by William White | August 6, 2013 11:10 am
The majority of U.S. employees in International Business Machines’ (IBM) hardware division are set to take a week-long furlough at the end of the month.
The furlough will start on either August 24 or 31, and during this time employees will be paid one third of what they would normally make. Executives within the hardware division will get no pay during that week. IBM saw sales in its hardware division decrease 12% during its second quarter. The furlough is being used by the company to preserve profit margins. IBM has also been spending money on repurchasing its stock. The company spent $3.6 billion in its second quarter to repurchase shares, reports Bloomberg.
“IBM continues to punish workers with job cuts, furloughs and pay cuts while the company spends billions to buy back stock and inflate the price,” Lee Conrad, coordinator of Alliance@IBM, told Bloomberg. “There appears to be no sacrifice at the top.”
Despite the poor sales from its hardware division, IBM has seen software sales during its second quarter increase 4% when compared to 2012’s second quarter.
IBM shares were down 2% as of Tuesday morning.
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