Assignment: Memo

Internal Information Message:
IBM Looks at Layoffs
This year IBM will again rebalance its workforce, IBM’s term for layoffs, according to senior vice president Mark Loughridge. Loughridge did not give specifics on where the layoffs would happen — most last year were focused outside the United States. But a slimmer workforce, along with selling businesses and research and development investments, would be part of the company’s “2013 transformation,” Loughridge said in a conference call with analysts and investors. “We’re going to rebalance resources, align them to opportunities,” he said.
In the fourth quarter, IBM posted a profit of $5.8 billion, up 6 percent from the same period last year. Profit for the year totaled $16.6 billion, up 5 percent from 2011. Much of the company’s growth comes from abroad. Revenue from the Asia-Pacific region increased 4 percent, while the Americas were flat, and Europe, the Middle East and Africa, all considered one region, fell 5 percent, according to a company news release.
Revenue from System Z mainframe server products increased 56 percent from the corresponding quarter last year. Revenue from those products in IBM’S growth markets jumped 68 percent. Revenue from System X, high-volume servers, decreased 2 percent. Loughridge said IBM will refresh its portfolio of Power products in 2013. Revenue from the Power line of products fell 19 percent compared with the same time period last year.
IBM’s fourth-quarter results usually perk up as companies make their final purchases for the year. But concerns and confusion over the U.S. fiscal cliff, combined with ongoing economic problems in Europe and Asia, may have affected results.
Adapted from Dinapoli, J., (January 23, 2013), IBM plans more layoffs, Recordonline: Times, Herald, Recorder, retrieved from http://www.recordonline.com/apps/pbcs.dll/article?AID=/20130123/BIZ/301230326

Your Task
As a department supervisor at IBM you’ve been approached by staff members who fear they will be laid off this year. Write a memo to your staff explaining IBM’s situation.

Expected Student Outcomes
Students will craft an appropriately formatted and worded “informational business message” (i.e., memo), keeping the tone positive and the content concise and to the point. Keep in mind that the emphasis should be on continuing a positive relationship with your employees. An overly short, curt message is not desirable. Do NOT copy case language.

Assessment Measures
Your instructor will not only evaluate content and tone but also form, so make sure you write a business memo in the correct format. Use proper spacing. Don’t forget to spell-check and to proofread. Follow directions and craft a well-written memo to be delivered to your staff.

Do well!