IBM is planning to cut 1,315 U.S. jobs, according to reports yesterday from a union group attempting to organize IBM employees. The company's chief financial officer, Mark Loughridge, said "[IBM is] putting in place a series of actions to address our U.S. cost base, including a basic focus on resource and cost management disciplines and rebalancing of resources as we execute our global resource strategy." The layoffs affect IT workers in server operations, technology integration, and financial services.
The Cablevision board of directors approved a $10.6 billion buyout offer from the managing Dolan family to take the company private. The deal marks the end of a two-year effort to buy the company, and the Dolans said that freedom from shareholder demands and an "entrepreneurial perspective will enable us to keep growing the business." Cablevision shares rose 8.1 percent to $35.33 on the news.
Sprint Nextel reported a first quarter loss of $211 million, adding weight to concerns that the company is failing to regain market share from competitors. Sprint Nextel lost 220,000 customers to other service providers during the quarter. The company's chairman and chief executive, Gary Forsee, said the losses were a result of spending to resolve technological glitches and improve customer service.
Rupert Murdoch's $5 billion unsolicited takeover bid for Dow Jones & Co. is expected to spark a bidding war that could raise the deal price up to $100 a share. Murdoch's News Corp. yesterday increased its offer to $60 a share. Any eventual acquisition would bring a dramatic change to the competitive landscape in the media industry.