Computer hardware giant IBM is rumoured to be considering wholesale job cuts following its profit warning to Wall Street.
Up to 8,000 job cuts are to be announced across many of the company’s business divisions by the middle of this year. The majority of the job cuts are expected to take place in the US. The proposed redundancies would signal IBM’s largest workforce reduction in a decade.
Analysts believe that job cuts are necessary due to IBM having suffered a period of stagnant sales growth, caused by the general reduction in spending on computer hardware and technology.
The proposed job cuts in the US come soon after IBM’s decision in November to axe 1,000 jobs from its semiconductor division.