This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IBM Plans Hardware Division Layoffs: Report

Stocks in this article: IBM

NEW YORK ( TheStreet) -- IBM  (IBM) is reportedly planning to layoff as much as 25% of its hardware division staff.

IBM announced plans to rebalance its workforce when it reported its fourth-quarter results last month. According to CNET the Armonk, NY-based company confirmed it is planing on reducing its workforce so that it can better focus on its new priorities including analytics, cloud and cognitive computing.

The rumored layoffs could affect workers in New York, Minnesota and Vermont facilities. Alliance@IBM is a union seeking to represent workers in those states.

IBM shares dipped 0.02% to $185.22 shortly after market open.

One source told CNET that most would come from IBM's Systems and Technology "hardware" group and that the numbers could be as high as 25% of that division. IBM declined to confirm specific layoff details in an email to TheStreet.

  Last month, IBM announced it was selling its x86 computer server business to Lenovo in a $2.3 billion deal. More than 7,000 IBM employees are expected to move to Lenovo along with their jobs. The two companies have done other huge deals together in the past. Eight years ago IBM sold its personal computer division (including the iconic ThinkPad laptops) to Lenovo as well.

IBM is trying to shift the company's focus to projects such as Watson - the artificially intelligent super computer made famous when it beat human experts at asking/answering questions on Jeopardy. While not being able to answer every question (it had problems with very short clues) Watson won the $1 million top prize on the quiz show.

"IBM is positioning itself to lead in areas such as Cloud, Analytics and Cognitive Computing and investing in these priority areas," wrote an IBM spokesman, in statement emailed to TheStreet. "For example, already this year we have committed $1 billion to our new Watson unit and $1.2 billion to expand our Cloud footprint around the world."

The week IBM also announced a $1 billion investment in platform-as-a-service Cloud capabilities, as well as investments in nanotechnology. The spokesman said that this will bring hundreds of new jobs to New York State while also creating new job opportunities at IBM.

"At any given time, IBM has more than 3,000 job openings in these and other growth areas in the US," he added

IBM currently employs more than 400,000 workers worldwide and tens of thousands here in the United States.

Written by Gary Krakow in New York.

To submit a news tip, send an email to

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs