Does IBM have future in Vermont?
Here's a little chunk from a well-researched, long article written by Paul Heintz from Vermont's alt paper, Seven Days.
While there is no direct link (as far as I know) between the fate of the Vermont campus and the one in Rochester, this does sound familiar. For anyone interested in the what is happening with Big Blue, this is a pretty worth-while read.
You can read the full article at this link.
What we're looking at is a city," Frank Cioffi says, nodding at a sprawling landscape of industrial buildings, electrical transformers and storage tanks on the banks of the Winooski River.
The 59-year-old economic development guru steers his black Nissan Maxima toward a guard shack that stands sentry at the northeastern entrance to IBM's Essex Junction campus.
In more certain times, the Greater Burlington Industrial Corporation president might easily escort a reporter through the 725-acre campus, which GBIC developed from farmland 60 years ago. But with Big Blue reportedly nearing a sale of its chip-making division to Emirate of Abu Dhabi-owned GlobalFoundries, IBM Vermont is on lockdown.
Even Cioffi, its loudest local cheerleader, is in the dark about what a sale might mean for the 4,000-plus jobs remaining at the facility. Like many, he suspects IBM will reveal its intentions next week when it releases its second- quarter earnings report.
"We're dealing with two public corporations that aren't going to tell us anything, because they can't," he says.
Clouds of uncertainty have lingered over Essex Junction for more than a decade, as the company has retrenched and its Vermont workforce dwindled from a 2001 peak of 8,500. But never have the skies above the industrial park looked so dark.
As IBM repositions itself as a services-oriented company focused on cloud computing, it has jettisoned less profitable hardware operations. In January, it struck a deal to sell off its low-end server business to China-based Lenovo for $2.3 billion.
Though GlobalFoundries specializes in the very chip-manufacturing work conducted at the Essex Junction plant, reports in the financial press have indicated that the company is interested in IBM's patents and engineers — not its aging facilities.