IBM Australia is looking to let go of 1,500 jobs in a move to send jobs offshore to New Zealand and Asia. Local jobs held by around 1,200 to 1,500 Australians are affected as their jobs have been found to be redundant. The figures are comparable with Ford's plans to cut 1,200 jobs when the company leaves Australia in 2016.

IBM Australia is refusing to confirm the exact number of affected jobs and whether it has plans to send Australian jobs somewhere outside the country. The company states competitive reasons for declining comments on its staff requirements. Sources say that offshore jobs will serve Australian clients.

In a March teleconference with IBM New York office, Australian executives were informed of job redundancies and announced a global restructuring plan in April. IBM Australia was instructed to terminate 10 per cent of the company's existing local employees within the year. The New York office order was made after a poor global performance in the first quarter.

IBM Australia reportedly has 12,000 to 14,000 local staff. The job redundancies are only adding to Australian job losses in communication technology following the offshoring plans and jobs cuts of computer giants like HP.

Reports also say that tech employees in banking and other big industries were asked to train people in the Philippines, China or India before getting fired from their jobs.

Alan Hansell, analyst for IBRS, says the recent job cuts would mean less IT jobs for Australians. He said the 457 visa program must be reviewed considering its effect to local employment.

Hansell says that IBM may be finding it difficult to manage jobs while keeping them profitable at the same time.

The global restructuring plans of IBM will cost the company $1 billion USD. Although job cuts are being implemented on a global scale, Australia seems to receive the most impact.