IBM could cut between 2.5 and 3 per cent of its 318,000-strong workforce, according to a source.
The job cuts, which are anticipated to take place during the second quarter, would be the largest that the world's largest computer maker has made since the early 1990s when it was struggling to be profitable.
The cuts are not expected to be company-wide but to target areas.
The move has been widely anticipated by analysts since the company announced first-quarter earnings that fell short of its and Wall Street's expectations.
IBM is faced with stagnant sales due to a technology spending slowdown.
