IBM expects to transfer 7,500 employees to Lenovo

Tencent Science and Technology Ming Xuan January 24 compiled Lenovo Group announced in Thursday, will be 2.3 billion U.S. dollars to acquire IBM low-end server business. According to the agreement signed by the two sides, the acquisition price contains 2.07 billion U.S. dollars in cash and 182 million shares of Lenovo Group issued to IBM. In addition, IBM will transfer about 7,500 employees to Lenovo Group. The price reached by the two sides is much lower than the rumor that IBM would like to get the price. Previous sources said IBM wanted to sell low-end server business at a price of $2.5 billion to 6 billion. In a statement issued by two companies, IBM will transfer thousands of employees to Lenovo Group. The statement said IBM deployed around the world's approximately 7,500 employees, including the United States Raleigh, Shanghai, Shenzhen and Taipei and other major areas of staff, is expected to be transferred to Lenovo Group. IBM employees had previously disclosed to technology blogger Business Insider that the low-end server sector was one of the targets of IBM's layoffs last summer. IBM's earnings in 2013 included a $1 billion trillion in labor force replacement spending. Some industry experts point out that this is equivalent to IBM in the global layoffs of 6000 to 8000 people. Even if the 7,500 jobs were eliminated, IBM's job cuts might not have been completed. In a recent earnings conference call, IBM said the company's future earnings will also account for 1 billion of billions of dollars in labour replacement spending. Martin Schroeter, IBM's chief financial officer, Martin Schrott that, as we stressed in the conference call, we are spending more on the labor force than last year's earnings. This will happen in the first quarter. From a year-round perspective, this will not have a year-on-year impact. We expect this year's labour-replacement spending to be roughly the same as last year, at around $1 billion trillion, plus $100 million trillion. IBM's last public announcement was in 2012, when the company had 434,246 employees. IBM is currently reorganizing to get companies out of shrinking markets and to invest more in growth markets. This includes 1 billion dollars invested in the new IBM Watson sector. In addition, IBM has invested 1.2 billion of dollars to expand its global cloud computing services. IBM certainly needs to find new growth points. Throughout the 2013, most of the company's main business unit revenue was declining. It also led to Rometty Ginni Rometty, IBM's chief executive, who announced the cancellation of bonuses for 2013-year executives. IBM's shares rose 0.48 U.S. dollars in the NYSE's regular trading in Thursday, up 0.26% to $182.73. In the past 52 weeks, IBM's lowest share price was $172.57, with a maximum of $215.90. At the closing price of Thursday, IBM's market capitalisation was about $198.4 billion trillion.