Transfer of work to another site is a valid reason for redundancy. From the Government's HR1 form which employers have to submit, possible reasons for redundancies are:
A. Lower demand for products or services
B. Completion of all or part of contract
C. Transfer of work to another site or employer
D. Introduction of new technology/plant/machinery
E. Changes in work methods or organisation
F. Other (please give brief details below)
G Insolvency
I have not seen IBMs HR1 but I would imagine that they ticked box 'C'. In this circumstance the jobs do not have to cease for the people to be made redundant.
Biting the hand that feeds IT
