IBM to ship jobs from Rochester to New York, Mexico

6:00 PM, Mar 6, 2013   |    comments
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ROCHESTER, Minn. - IBM has announced that it will ship jobs out of Rochester to Mexico and New York.

The company; however, is not saying the exact number of jobs they'll send out of Minnesota.

"It's going to be less than 200 employees that will be laid off in the Rochester area," DFL State Rep. Kim Norton of Rochester said.

The company's Power Systems, PureSystems and PureFlex system server divisions will go south of the border, while their refurbishing jobs will be sent to New York.

The state Department of Employment and Economic Development has not received a notice of the layoffs, meaning the layoffs aren't likely to be on a grander scale. An estimated 4,000 workers are employed in the city's massive campus.

Perhaps what's more troubling is where those jobs are going.

"You kind of wonder what's happened in our own climate here," Rochester Mayor Ardell Brede said.

"Well, I think there is something to learn. In my discussion with IBM, one of the issues they raised is the continued taxation discussion about foreign royalties," Norton remarked.

"We have to look at these things. We have to be real about this. Business is going to move towards where profitability exists and if it's not in Minnesota, it's going to be someplace else," Sen. David Senjem, a Rochester Republican, told KARE 11.

An IBM spokesperson says the moves are part of a global reorganization to ensure the best infrastructure. They'll take place between now and mid-2014.

Supercomputing, customer solutions and company tech center jobs will remain in Rochester.

(Copyright 2013 by KARE. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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