New York, Sept. 3 (Reuters): About 4,000 people are likely to lose their jobs as IBM Corporation completes its acquisition of PricewaterhouseCoopers LLC’s consulting arm, the Wall Street Journal reported in its online edition Tuesday, citing people familiar with the matter.
It has not been determined how many will come from the Pricewaterhouse consulting group, which has about 30,000 workers, the Journal reported. It was also uncertain how many will come from IBM’s 50,000-employee consulting arm, known within IBM as Business Innovation Services, the Journal reported.
The deal is scheduled to be completed on about September 30 and the layoffs, which would amount to about 5 per cent of the combined units, are expected during the fourth quarter, according to the Journal article.
Last month, IBM announced an agreement to acquire the consulting business for $ 3.5 billion in cash and stock.
Many of the layoffs are expected to be in the support-staff area, with IBM planning to retain people with direct client contacts, the Journal reported.
The people familiar with IBM’s plans said the layoffs are still being fine-tuned and could change if the information-technology consulting business rebounds unexpectedly or if it continues to get worse, according to the Journal article.