IBM confirms plans to cut 15,000 jobs

IBM says it is in the process of cutting more than 15,600 jobs, or 5 per cent of its workforce.

IBM says it is in the process of cutting more than 15,600 jobs, or 5 per cent of its workforce.

The total layoff figures appeared in a filing with the federal Securities and Exchange Commission.

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The workforce reductions are intended to drive productivity and efficiency throughout the company
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IBM spokeswoman Ms Carol Makovich

IBM reports cutting 14,213 jobs from its Global Services unit, along with smaller numbers of workers in its servers and software businesses.

It's also cutting 1,400 in its Microelectronics division, which manufactures semiconductors.

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IBM blamed the cuts on "the recent decline in corporate spending on technology services".

IBM spokeswoman Ms Carol Makovich said: "The workforce reductions are intended to drive productivity and efficiency throughout the company."

By September 30th, when most of the laid-off workers are expected to have departed, IBM's work force will have been cut from 320,000 to around 305,000.

Shares of IBM were up 13 cents to close at $71.90 in trading on the New York Stock Exchange, but fell 16 cents in extended trading.