Kiss Your IT Sector GoodBye
We've been led to believe that ours is becoming a service economy and that education and high technology is the future. But, that's not the whole story . . .
The residual effects of sweeping cost cuts helped boost IBM's first-quarter earnings by 22 percent . . . despite minor revenue growth.Sound familiar?
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[IBM's CEO] praised the results and said they reflected "the benefits of the strategic actions we've taken in recent years to reposition the company."
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With increased competition from less-expensive providers around the world, IBM's services growth has been sluggish in recent quarters.
Profit gains have been achieved largely through expense cuts and shifts in labor from costlier markets such as Europe to places like India.
[Russo] aims to save $1.7 billion after three years . . . [by eliminating] 10 percent of the combined staff, or 8,800 jobs, after reducing the workforce by 50 percent at Murray Hill, New Jersey-based Lucent.Expect much more of the same until the only jobs left in America pay minimum wage, if that.
So, yes ours is becoming a service economy, but a third world one - where the benefits of technology inure to the rich, while the lower class is exists to serve them - literally.