IBM Argentina lays off hundreds due to labor costs

AP News
Posted: Sep 26, 2012 3:13 PM

BUENOS AIRES, Argentina (AP) — A union for workers at IBM Argentina says the company has initiated a plan to lay off 500 workers in the next few months.

Asked for comment Wednesday, the company sent a statement to The Associated Press saying only that "change is constant in the technology industry."

The union said IBM's campus of 9,000 workers in suburban Buenos Aires would be reduced by more than 5 percent under a plan seeking to avoid losses for the subsidiary.

The Ecolatina consulting firm says Argentine labor costs have more than quintupled since 2002, including a 17 percent hike in the last year.