IBM job numbers fall again; more incentives on hold
The state of Missouri suspended another business incentive for IBM, the major corporation that’s fallen far short of its anticipated job growth in mid-Missouri.
IBM reported 287 employees as of June at its Columbia facility, according to state numbers ABC 17 News confirmed Tuesday. That means it will lose another workforce training program paid by the state government, since employment numbers dropped below 300.
ABC 17 News has extensively covered the company’s time in Columbia, receiving $12.1 million in tax incentives from the state from 2010 to 2015. The Department of Economic Development suspended Missouri BUILD incentives last year, when IBM reported 453 employees. That same year, the state suspended a workforce training project, but could reactivate it if IBM raised employment numbers to above 400.
DED spokeswoman Amy Susan said that since IBM’s workforce in Columbia has now fallen below 300, the state has suspended another training program, and could deactivate it if it doesn’t get to 300 employees by August 2017.
“We will not process training bills or make any payments to the training provider for project No. 3,” Susan said.
In a statement, company spokesman Clint Roswell called the Columbia facility an “integral part” of IBM’s operation.
“Staffing is variable, reflecting the evolving requirements of clients that we serve from that facility. IBM has designated Columbia as one of five Client Innovation Centers in the U.S. and we expect our presence to grow from current employment levels because of that designation.”
The company can still claim BUILD benefits if it gets above 500 employees by 2020. Susan said tax credits will not work retroactively, and IBM has a chance to claim around $4 million through the program. However, it will be removed from the program employment drops below 125.
IBM opened its Columbia facility in 2010, promising 800 jobs in exchange for $28 million in tax incentives from the state. The city of Columbia purchased the land on Lemone Industrial Boulevard for $3 million, leasing it to the company for $1 a year. City leaders that opposed the secrecy shrouding IBM’s plan in 2010 – known then as “Project Tiger” while negotiating incentives – lean on the city’s ownership of the large building, suitable for office space, as a boon, despite the under whelming employment numbers compared to what was promised.
IBM laid off several people in January 2015 as part of a “$600 million restructuring” of the company. Roswell said the company will also reconfigure offices to encourage “agile work and collaboration” in the workplace.
“This will drive faster innovation, create an even better environment for our employees and result in a win for IBM, our clients and Columbia,” Roswell wrote.
IBM posted its 18th consecutive quarter of falling revenue this week, as well. However, profits in its new technologies, such as cloud computing and artificial intelligence, which IBM calls “strategic imperatives,” showed growth in the quarter.
