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IBM fires 600, furloughs 3,000 in chip unit

Bloomberg reports that IBM will lay off 600 workers and furlough 3,000 for one week without pay at its chipmaking business to reduce costs. About 500 of the firings will be made at IBM’s Burlington, Vermont, factory. About 100 people at other chip facilities in cities including Austin, Texas; Raleigh, North Carolina; Rochester, Minnesota; and East Fishkill, New York will lose their jobs. The furloughs will be staggered to avoid a reduction in chip production. IBM spokesman Scott Skyes told MacMinute that “PowerPC G5 production will be unaffected.”

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