IBM’s exit from the PC building business was confirmed on 01 May, with Lenovo of China completing its US$1.75bn acquisition of what was once IBM’s core manufacturing unit. No sooner had the ink from those elegant fountain pens dried than IBM started wielding a blood-soaked nib across the remainder of its organisation, with Europe bearing the brunt of the pain.

In a statement published prior to details that are set to be expanded upon by Mark Loughridge, senior vice president and cfo in a briefing today, the company said that “IBM's restructuring actions include voluntary and involuntary workforce reductions of between 10,000 and 13,000 employees worldwide. The majority of the overall workforce reductions are planned for Europe, and the company has initiated discussions of these changes with local consultation bodies.”

It’s wrong to link these swathing job cuts across the heart of Europe with the disposal of the PC unit, although the company may indeed be doing so on a subliminal basis.

The statement continues: “The company plans to realign its operations and organizational structure in Europe to improve the speed of execution and better meet the needs of its clients. The success of this strategy will depend on reducing bureaucracy and infrastructure in lower-growth countries and creating teams that can work across country borders, shifting more employees into direct client roles that support the company's plans to deliver higher-value services and products. This eliminates the need for a traditional pan-European management layer to coordinate activity. As a result, IBM will create a number of smaller, more flexible local operating units in Europe to increase direct client contact.”

New force
Back on the Lenovo front, Yuanqing Yang, chairman of Lenovo, said on Sunday, “the closing of this transaction is an historic event for Lenovo and marks a new era for the global PC industry. The new Lenovo’s strategy is based on what our customers want: high-quality products and world-class service. We are committed to delivering the highest quality, most innovative PC products and services to our customers, to providing the best working environment for our employees, and to creating value for our shareholders.”

The move to Lenovo would appear to confirm a shift in the balance of ICT manufacturing power in China’s favour. Consumers will surely benefit from the price and quality advantages. Industrial and employment strategies could prove more tricky.

A trickier question for IBM, sans-PC and with the forthcoming results of a ‘scorched earth’ policy in Europe soon to be trailing in its wake, would be "what exactly is 'Big Blue' for?". And just as pertinently one could add, "and for how long?".
Jim Chalmers