IBM's Hardware Division Could Bear the Brunt of Upcoming Job Cuts

Paul Lilly

Big Blue is making some changes

IBM knows the business areas it wants to focus on going forward. The company also knows that job cuts are inevitable as it attempts to "rebalance its workforce" to the fit the direction it's headed, though exactly how many employees will be receiving pink slips hasn't yet been determined, at least not officially. Unofficially, IBM may reduce the number of workers in its Systems and Technology group by up to 25 percent .

Otherwise known as the hardware division, IBM's Systems and Technology arm builds the company's servers. The 25 percent figure was thrown around by a "source familiar with the plans," according to CNET . A spokesman for IBM also talked with CNET, though he didn't get into specifics about the layoffs.

"As reported in our recent earnings briefing, IBM continues to rebalance its workforce to meet the changing requirements of its clients, and to pioneer new, high value segments of the IT industry," IBM spokesman Doug Shelton said. "To that end, IBM is positioning itself to lead in areas such as cloud, analytics and cognitive computing, and investing in these priority areas."

There are more than 400,000 employees around the world who currently work at IBM. In addition, Big Blue isn't afraid to spend money, such as committing $1 billion to its Watson unit and $1.2 billion to expand its Cloud offerings. At the same time, IBM recently offloaded its x86 server business to Lenovo for $2.3 billion, so it wouldn't be a big surprise if the company's Systems and Technology group saw the most layoffs.

Image Credit: Flickr (Daniel Voyager)

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